Question

Sarah borrowed some money from her father at a simple interest rate of 5.5% to pay for her college tuition. At the end of the year, she paid the father $2,555 00. Find the amount she borrowed from her father

Answer 1

$\bf ~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\to &\ 2555\\ P=\textit{original amount deposited}\\ r=rate\to 5.5\%\to \frac{5.5}{100}\to &0.055\\ t=years\to &1 \end{cases} \\\\\\ 2555=P[1+(0.055)(1)]\implies \cfrac{2555}{1+(0.055)(1)}=P \\\\\\ \cfrac{2555}{1.055}=P\implies 2421.800947867 \approx P$