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

Addyson Hughes

Mathematics

9 August, 22:20

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?

+3

Answers (1)

Know the Answer?

Corinne Dunlap · 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.