SOLUTION: Peter wrote a check of $7820 to pay off a loan, which was given to him at a rate of 5% simple interest for 3 years. How much did he borrow originally?

 

Hi

Re TY

Super! on going back to college. (For myself will not be seeing my 60's ever again after yesterday :)

The   is one of those Algebra things:  P is understood to be 1•P

TY, for Your Inquiry.  Will be clarifying the 1•P in future similar questions.

For a number of people using this site, it has been a number of years since the 'ol Algebra days.

Wish You the Best in your Studies.

.......

I =  = .15P

P + I = $7820

1•P + .15P = $7820

P(1 + .15) = $7820

P = $7820/1.15 = $6800