Answer to Question #267345 in Financial Math for Ayana Prica

Question

How much was borrowed if a simple interest rate of 2.10% was offered payable in 4 months with interest of Php35.00?

Answer 1

Simple Interest = $Prn$

where P is principal amount,

r is annual interest rate,

n is term of loan, in years.

$0.021\cdot4P/12=35$

$0.007P=35$

$35/0.007P=Php\ 5000$