Karen borrowed money from a loan shark at an interest rate of 114% APR. Karen paid the loan shark $12150.00 back after 25 months (after being threatened a few times).
What will be the time in the formula be for this calculation?
How much money did Karen borrow?
P = Po + Po*r*t.
r = 1.14/12 = 0.095/mo. = Monthly % rate.
12,150 = Po + Po*0.095*25, Po = ?.