SOLUTION: Tina borrowed some money at 6% simple interest and paid it back exactly seven years later by making a single payment of $4544. How much did she borrow in the first place?
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Question 1013116: Tina borrowed some money at 6% simple interest and paid it back exactly seven years later by making a single payment of $4544. How much did she borrow in the first place?
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You can put this solution on YOUR website! P=Po(1+r/t)^nt; P=the final amount; Po=initial amount. Simple interest is simply 1+ the rate. That number is raised to the number of years, here 7.
P=Po(1.06)^7
P=4544
4544=Po(1.06)^7; 1.06^7=1.5036. Without rounding, divide both sides by this number.
$3022.02.
