Yue Chen borrowed some money from the bank at an 11% annual rate for 5 years. She paid $1,375 in interest. How much money did she borrow when she applied for the loan?

Question

Mathematics

Tess Branch

7 April, 17:08

Yue Chen borrowed some money from the bank at an 11% annual rate for 5 years. She paid $1,375 in interest. How much money did she borrow when she applied for the loan?

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Nicole Edwards · Answer 1

Simple interest I = PRT/100 Where P is the principal, R is the rate and T the time. The question seeks to know the amount borrowed (Principal) So we have 1, 375 = (P * 11 * 5) / 100 1375 * 100 = 55P P = (1375 * 100) / 55 P = 137500/55 = 2500. Yue borrowed $2, 500.