document.write( "Question 1194568: Matt paid $136.50 interest on a loan at 4% simple interest for 1.5 years. How much did he borrow? \n" ); document.write( "

Algebra.Com's Answer #826804 by math_tutor2020(3816) $\"\"$ $\"About$

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\n" ); document.write( "Either memorized or in your notes somewhere, you should have this simple interest formula
\n" ); document.write( "i = P*r*t\r
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\n" ); document.write( "\n" ); document.write( "The variables are:
\n" ); document.write( "i = simple interest
\n" ); document.write( "P = principal, aka amount borrowed
\n" ); document.write( "r = annual interest rate in decimal form
\n" ); document.write( "t = number of years\r
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\n" ); document.write( "\n" ); document.write( "In this case,
\n" ); document.write( "i = 136.50
\n" ); document.write( "P = unknown and what we want to solve for
\n" ); document.write( "r = 0.04
\n" ); document.write( "t = 1.5\r
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\n" ); document.write( "\n" ); document.write( "So,
\n" ); document.write( "i = P*r*t
\n" ); document.write( "136.50 = P*0.04*1.5
\n" ); document.write( "136.50 = P*0.06
\n" ); document.write( "0.06P = 136.50
\n" ); document.write( "P = 136.50/0.06
\n" ); document.write( "P = 2,275\r
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\n" ); document.write( "\n" ); document.write( "Answer: $2,275
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