3. Mr. Jones took a loan from the bank at 11.25% per annum for 9 months and repaid $270 simple interest. Calculate the amount of money Mr. Jones borrowed from the bank.
Let's assume that Mr. Jones borrowed x dollars from the bank.
The formula for simple interest is:
Interest = Principal * Rate * Time
In this case:
Interest = $270
Rate = 11.25% per annum = 11.25/100 = 0.1125
Time = 9 months = 9/12 = 0.75
So, 270 = x * 0.1125 * 0.75
270 = 0.084375x
Dividing both sides by 0.084375:
x = 270 / 0.084375
x ≈ $3,200
Therefore, Mr. Jones borrowed approximately $3,200 from the bank.
To find the amount of money Mr. Jones borrowed from the bank, we can use the formula for simple interest:
Simple Interest = Principal x Rate x Time
Given:
Simple Interest = $270
Rate = 11.25% per annum
Time = 9 months
Now, let's calculate the principal (borrowed amount).
Step 1: Convert the rate from percentage to decimal:
Rate = 11.25% = 11.25/100 = 0.1125
Step 2: Convert the time from months to years:
Time = 9 months = 9/12 years = 3/4 years
Step 3: Substitute the values into the formula:
$270 = Principal x 0.1125 x (3/4)
Step 4: Solve for the principal:
$270 = Principal x 0.084375
Principal = $270 / 0.084375
Calculating:
Principal = $3,200
Therefore, Mr. Jones borrowed $3,200 from the bank.