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alexandr402 [8]
3 years ago
14

ermaine’s father owes $6,300 in interest at the end of a 60-month car loan at a 7% simple annual interest rate. What was the ori

ginal loan amount?
Mathematics
1 answer:
Aleks04 [339]3 years ago
7 0

The pertinent formula is i = p*r*t.  Here, i = $6,300, r = 0.07 and t = 5 yrs.

We want to solve this for the principal, p.  Since i = p*r*t,  p = i / (rt).  In this case, the principal was:

p = $6,300 / [0.07*5] = $6,300 / 0.35 = $18,000

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\boxed{x=-4}

<u />

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