SOLUTION: A loan yielded $60 per year simple interest. If the rate of interest increased by 0.5% the simple interest is $70. What is the amount of loan?

Question 1105709: A loan yielded $60 per year simple interest. If the rate of interest increased by 0.5% the simple interest is $70. What is the amount of loan?
Answer by ikleyn(52757) (Show Source): You can put this solution on YOUR website!
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Increasing the interest rate by 0.5% leads to increasing the simple interest from $60 to $70:


0.005*X = 70-60 = 10 dollars.


It means that the amount of the loan X is  X =  = 2000 dollars.

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