SOLUTION: Dr. Sand borrowed some money to buy new furniture for her office. She paid $245.00 simple interest on a 3.5-year loan at 3.5%. Find the principal. I got $2,400 but I was tol

Question 157726: Dr. Sand borrowed some money to buy new furniture for her office. She paid $245.00 simple interest on a 3.5-year loan at 3.5%. Find the principal.

I got $2,400 but I was told that is not correct. What have I done wrong?
Answer by vleith(2983) (Show Source): You can put this solution on YOUR website!
Simple interest tells you that the annual interest the good Dr paid is 240/3.5 (the total interest divided by the 3.5 year term of the loan). That means Dr S is paying $70/year in interest.
Given an interest rate of 3.5%, we see that

Check your answer.
In the first year, the Dr pays 70.
In the second, 70 more
In the third, yet another 70.
Then for 1/2 year, the Dr pays 70/2 = 35.
For a total of 70+70+70+35 = 245
RELATED QUESTIONS
Dr. Sand borrowed some money for new furniture. She paid $245. simple interest on a 3.5... (answered by josmiceli,scott8148)

A business borrowed $2,400 at 7% simple interest per year to buy new tables. If it paid... (answered by stanbon)

matthew borrowed $24,000 dollars to buy a new truck. after 5 years,he paid $7,500 in... (answered by mananth)

E-Z-R Loan Agency writes a loan agreement stipulating that $1308 is to be paid for a... (answered by solver91311)

a company borrowed 75000 for 9 years at a simple interest of 13.5% to buy cabinet's. find (answered by addingup)

To buy furniture for a new apartment,Darryl Nartin borrowed $5000 at 4.75% simple... (answered by fractalier)

A man needed money for college. He borrowed $6,000 at 16% simple interest per year. If he (answered by JulietG)

john needed money for college. he borrowed $7500 at 6% simple interest per year. if he... (answered by fractalier)