SOLUTION: A loan is charged simple interest at an annual rate of 9.1%. The loan was repaid at the end of 8 months with a check for $896.56. What was the original amount that was borrowed?
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Question 1122143: A loan is charged simple interest at an annual rate of 9.1%. The loan was repaid at the end of 8 months with a check for $896.56. What was the original amount that was borrowed? Answer by Alex.33(110) (Show Source):
You can put this solution on YOUR website! original amount=x. It's simple interest so the interest in any same duration is the same. That's why we can come to
x*(1+0.091*(8/12))=896.56
x=845.28.(approximately)
