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Olegator [25]
2 years ago
9

Joshua’s computer loan statement said he would pay $1,244.34 in simple interest for a three-year loan at 12.4%. How much did Jos

hua borrow to buy the computer?
Mathematics
1 answer:
rusak2 [61]2 years ago
4 0

Answer: Josh borrowed $ 876  to buy the computer.

Step-by-step explanation:

Formula for simple interest : I = Prt

, where P = principal amount

r= rate of interest ( in decimal)

t=time (in years)

Total amount with simple interest to pay : A = P+I

⇒ A = P +Prt

⇒ A = P(1 +rt)         (i)

As per given , A = $1,244.34

r= 12.4% = 0.124

t= 3 years

Now, put these values in (i) , we get

1244.34=P(1+0.124)^3\\\\\Rightarrow\ 1244.34=P(1.124)^3\\\\\Rightarrow\ 1244.34=P(1.420034624)\\\\\Rightarrow\ P=\dfrac{1244.34}{1.420034624}\\\\\Rightarrow\ P=876.27

Hence, Josh borrowed $ 876  to buy the computer.

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