SOLUTION: A loan yielded $60 per year simple interest. If the rate of interest increased by 0.5% the simple interest is $70. What is the amount of loan?
Question 1105709: A loan yielded $60 per year simple interest. If the rate of interest increased by 0.5% the simple interest is $70. What is the amount of loan? Answer by ikleyn(52756) (Show Source):
Increasing the interest rate by 0.5% leads to increasing the simple interest from $60 to $70:
0.005*X = 70-60 = 10 dollars.
It means that the amount of the loan X is X = = 2000 dollars.
