Question

Joe overheard his father complaining about having to pay $300 in interest in just one year. The simple annual interest rate was 16%. How much money did Joe's father borrow?

Answer 1

Answer:

The answer is 1,875

Step-by-step explanation.

When the numbers are substituted into the formula, I equals Prt, the result is three hundred equals P times point one six times one.

Multiplying point one six times one gives us point one six.

To determine the principal, divide the interest by point one six. Now we have the principal, which is one thousand eight hundred seventy-five dollars.

:-)

Answer 2

Answer:

Joe's father borrowed $1,875.

Step-by-step explanation:

The simple interest formula is $I = Prt$

$I$ is the interest.

$P$ is the principal amount.

$r$ is the rate.

$t$ is the time in years.

Since we want to know how much money he borrowed that would be considered the prinicipal amount. Therefore, we need to manipulate the formulate so that it equal $P$ instead of $I$.

We simply need to divide the rate and time from both sides of the equation in order to single out $P$.

$I = Prt$

$I(\frac{1}{rt} ) = Prt(\frac{1}{rt})$

$\frac{I}{rt}=P$

Now plug in the given information into our formula.

$P= \frac{300}{0.16*1}$

$P = 1875$

Therefore, Joe's father borrowed $1,875.