SOLUTION: A loan is charged simple interest at an annual rate of 6.1%. The loan was repaid at the end of 8 months with a check for $983.95. What was the original amount that was borrowed?

Question 1151271: A loan is charged simple interest at an annual rate of 6.1%. The loan was repaid at the end of 8 months with a check for $983.95. What was the original amount that was borrowed? Round your answer to the nearest cent.
A loan in the amount of $538 is charged simple interest. The loan is repaid 10 months later with a payment in the amount of $629.91. What annual rate of simple interest was charged?
Give your answer as a percent, rounded to two decimal places.
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
the interest was 983.95-x, where x was the original principal
I=prt=x*0.061(2/3)=983.95-x
0.0407x=983.95-x
1.0407x=983.95
x=$945.47 ANSWER

I=prt
interest is 629.91-538=91.91
91.91=538*(10/12)*r
91.91=448.33r
r=20.50%
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