Question

How much was borrowed if a simple interest rate of 7.5% was offered payable in 12 months with interest of 105

Answer 1

If a simple interest rate of 7.5% was offered payable in 12 months with interest of 105, then the sum which was borrowed is:

$PV×(1 + 0.075) = (PV + 105),$

PV = 105/0.075 = 1400.