SOLUTION: Money is borrowed at 13% simple interest. After 1 year $694.95 pays off the loan. How much was originally borrowed?

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Question 1190290: Money is borrowed at 13% simple interest. After 1 year $694.95 pays off the loan. How much was originally borrowed?
Answer by greenestamps(13200) About Me  (Show Source):
You can put this solution on YOUR website!


The amount paid back was the original amount, x, plus the interest, which was 13% of x, or 0.13x: x+0.13x = 1.13x.

1.13x = 694.95
x = 694.95/1.13 = 615

ANSWER: $615