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Your total payment on a 3 yr loan, which charged 9% annual simple interest, amounted to...

Your total payment on a 3 yr loan, which charged 9% annual simple interest, amounted to $70,560. How much did you originally borrow?

Solutions

Expert Solution

Amount = Principal + (Principal * Rate * Time)

$70,560 = Principal + (Principal * 0.09 * 3)

$70,560 = Principal + 0.27Principal

$70,560 = 1.27Principal

Principal = $70,560 / 1.27

Principal = $55,559.06

jeff jeffy answered 2 years ago
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