Caitlin borrowed a certain amount of money for 9 years at an annual simple interest rate of 4.5%.

Caitlin borrowed a certain amount of money for 9 years at an annual simple interest rate of 4.5%. if the maturity value on the loan was $4,560, how much did she borrow?

Expert Solution

Principle + Simple Interest = Maturity Value

let Principle be X

X + (X*0.045 * 9 ) = 4560

X + 0.405X = 4560

1.405 X = 4560

X = 4560 / 1.405

X = 3245.55

Loan Amount is $3245.55

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jeff jeffy answered 2 years ago

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