Question 1111527
Simple interest:
{{{ I = P*r*t }}}
{{{ I = P*.04*5 }}}
{{{ I = .2P }}}
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{{{ 350*12*5 = 21000 }}}
This is interest + principle
{{{ I + P = 21000 }}}
{{{ .2P + P = 21000 }}}
{{{ 1.2P = 21000 }}}
{{{ P = 17,500 }}}
You can afford a $17,500 loan
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check:
{{{ I = .2P }}}
{{{ I = .2*17500 }}}
{{{ I = 3500 }}}
and
{{{ I = P*r*t }}}
{{{ 3500 = 17500*.04*5 }}}
{{{ 3500 = 17500*.2 }}}
{{{ 3500 = 3500 }}}
OK