Find the amount borrowed if $900 is due at the end of 4 months when an...

Find the amount borrowed if $900 is due at the end of 4 months when an annual simple interest rate of 9% is used.

Expert Solution

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Simple Interest rate:

Formula:

Future value= present value(1+r*n)

r= interest rate for the period. 9%

n = number of periods. =4/12

900 = PV*(1.03)

PV = $873.79

Answer: amount borrowed is $873.79

jeff jeffy answered 2 years ago

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