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harkovskaia [24]
2 years ago
15

Money is borrowed at 15% simple interest. After one year,$1181.05 pays off the loan. How much was originally borrowed?

Mathematics
1 answer:
marin [14]2 years ago
5 0

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

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