Answer: $787 was originally borrowed.
Step-by-step explanation:
The formula for determining simple interest is expressed as
I = PRT/100
Where
I represents interest paid on the loan.
P represents the principal or amount taken as loan
R represents interest rate
T represents the duration of the loan in years.
From the information given,
Total amount = $1181.05
Interest = total amount - principal
I = 1181.05 - P
R = 15%
T = 1 year
Therefore,
1181.05 - P
Therefore,
1181.05 - P = (P × 15 × 1)/100
1181.05 - P = 0.15P
P + 0.15P = 1181.0
1.5P = 1181.05
P = 1181.05/1.5
P = $787
