Answer to Question #295830 in Financial Math for Ricky

Question

Keith borrowed money from a credit union for 5

 years and was charged simple interest at an annual rate of 7

%

. The total interest that he paid was $

3150

. How much money did he borrow?

Answer 1

$Interest, I=\frac{PRT}{100}$

$3150=\frac{P\times 7 \times 5}{100}$

$P=\frac{3150 \times 100}{35}=\$9000$