document.write( "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.
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\n" ); document.write( "I got $2,400 but I was told that is not correct. What have I done wrong? \n" ); document.write( "

Algebra.Com's Answer #116227 by vleith(2983) $\"\"$ $\"About$

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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.\r
\n" ); document.write( "\n" ); document.write( "Given an interest rate of 3.5%, we see that
\n" ); document.write( " $\"70+=+Principal+%2A+0.035\"$
\n" ); document.write( " $\"+70%2F0.035+=+P\"$
\n" ); document.write( " $\"2000+=+P+\"$ \r
\n" ); document.write( "\n" ); document.write( "Check your answer.
\n" ); document.write( "In the first year, the Dr pays 70.
\n" ); document.write( "In the second, 70 more
\n" ); document.write( "In the third, yet another 70.
\n" ); document.write( "Then for 1/2 year, the Dr pays 70/2 = 35.
\n" ); document.write( "For a total of 70+70+70+35 = 245 \n" ); document.write( "

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