SOLUTION: If you take out a loan at 9% interest rate for 5 years, and the interest you ow is $10,350, what was the original amount of this loan?

Question 1136637: If you take out a loan at 9% interest rate for 5 years, and the interest you ow is $10,350, what was the original amount of this loan?

Answer by ikleyn(52787) (Show Source): You can put this solution on YOUR website!
.


For simple interest


    10350 = P*0.09*5,


where P is the principal (original amount), 0.09 = 9% and 5 = 5 years.


From the equation,  P =  = 23000 dollars.    ANSWER

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