SOLUTION: A finance company charges $55 simple interest on a sum of money which is borrowed for five months. Given that the rate of interest is 12% per annum, what is the sum of money.

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Question 1022707: A finance company charges $55 simple interest on a sum of money which is borrowed for five months. Given that the rate of interest is 12% per annum, what is the sum of money.
Answer by robertb(5830) About Me  (Show Source):
You can put this solution on YOUR website!
I+=+Prt ==> 55=P%2A0.12%2A%285%2F12%29 ==> P+=+%2855%2A12%29%2F%280.12%2A5%29+=+1100
==> A = P+I = $1,100 + $55 = $highlight%281155%29