Question

Mr. Peterson paid $1,020 in interest for a loan, which was given to him at a rate of 5% for 3 years. How much money did he borrow originally?

Answer 1

Answer:

The amount of money originally borrowed by Mr. Peterson  is $6,800.

Step-by-step explanation:

Let us assume the money borrowed originally = P

Rate of interest  = 5%

Time = 3 years

S interest = $1020

Simple Interest  = $\frac{P \times R \times T }{100}$

Substituting the all values, we get:

$1020 = \frac{P \times 5 \times 3 }{100}\\\implies P = \frac{102000}{15} = 6,800$

⇒  P = $6,800

Hence, the amount of money originally borrowed by Mr. Peterson  is $6,800.