Answer to Question #267443 in Financial Math for jade

Question

If Lilia paid P980.00 in interest at 14% for 2 years, how much money did she borrow?

 

Answer 1

Solution:

$I=980, R=14,t=2$

Let the money she borrowed be $P$

We know, $I=\dfrac{PRT}{100}$

$\Rightarrow 980=\dfrac{P\times 14\times2}{100} \\\Rightarrow P=\dfrac{98000}{28} \\\Rightarrow P=3500$

The money she borrowed was P3500.