document.write( "Question 485514: A 6.5% simple interest loan for 8 months had an interest charge of $234. How much money was borrowed? \n" ); document.write( "

Algebra.Com's Answer #332060 by Theo(13342) $\"\"$ $\"About$

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interest charge was $234.
\n" ); document.write( "6.5% is the annual interest rate percent i presume.
\n" ); document.write( "the rate is .065 per year.
\n" ); document.write( "the monthly rate is .0054166667 per month.
\n" ); document.write( "the total interest is 8 * .0054166667 = .043333333
\n" ); document.write( "since this is simple interest, there is no compounding that has to be performed.
\n" ); document.write( "divide the interest by the interest rate and you get the principal of $5400.
\n" ); document.write( "take 5400 and multiply it by .065 to get $351.
\n" ); document.write( "multiply that by 8 and divide it by 12 to get $234.
\n" ); document.write( "the money that was borrowed is $5400.\r
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