SOLUTION: Money is borrowed at 11% simple interest. After 1 year $721.50 pays off the loan. How much was borrowed originally?

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Question 917164: Money is borrowed at 11% simple interest. After 1 year $721.50 pays off the loan. How much was borrowed originally?
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
A = P(1+r*t)

721.50 = P(1+0.11*1) ... Plug in A = 721.50, r = 0.11 and t = 1

721.50 = P(1+0.11)

721.50 = P(1.11)

721.50/1.11 = P

650 = P

P = 650


$650 was borrowed originally.


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Thanks,

Jim