SOLUTION: find the amount borrowed on a 24 month loan at 5 3/4% if $368 in interest was paid

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Question 310871: find the amount borrowed on a 24 month loan at 5 3/4% if $368 in interest was paid
Answer by mollukutti(30) About Me  (Show Source):
You can put this solution on YOUR website!
Basic Facts:
Interest = (Principal x Time x Rate) / 100
Principal = (I x 100)/ (Time x Rate)
Here Interest = 368
Rate = 5.75 (converted the fraction to decimal)
Time = 24 mths = 2 yrs
Principal = (368 x100)/ (2 x 5.75)
= (368 x 100)/ 11.5
= 16000
Amount = Principal + Interest
= 16000 + 368
= 16368