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madam [21]
3 years ago
8

Connor took out a 4 year loan to buy a car at a 4% simple interest rate. if he has to pay $240 in interest, how much principal d

id he borrow?

Mathematics
1 answer:
uysha [10]3 years ago
3 0

Answer:

The principal borrow for loan is $1,500 .

Step-by-step explanation:

Given as :

The interest paid on simple interest = s.i = $240

The rate of simple interest applied = r = 4%

The time period for loan = t = 4 years

Let The principal borrow = $p

Now,<u> from Simple Interest method</u>

Simple Interest = \dfrac{\textrm principal\times \textrm rate\times \textrm time}{100}

Or. s.i = \dfrac{\textrm p\times \textrm r\times \textrm t}{100}

Or, $240 = \dfrac{\textrm p\times \textrm 4\times \textrm 4}{100}

Or, $240 × 100 = 16 × p

Or, $24000 = 16 × p

∴ p = \dfrac{24000}{16}

i.e p = $1,500

So, The principal borrow for loan = p = $1,500

Hence, The principal borrow for loan is $1,500 . Answer

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