Dr. Collins borrowed some money to buy new furniture for her office. She paid $720.00 simple interest on a 7.5-year loan at 16%. Find the principal.

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To find the principal, we need to use the formula for simple interest:

Simple Interest = Principal x Rate x Time

In this case, we are given the interest, time, and rate, and we need to solve for the principal.

Given:
Simple Interest = $720.00
Time (in years) = 7.5 years
Rate = 16% = 0.16 (converted to decimal)

Substituting the given values into the formula, we get:

$720.00 = Principal x 0.16 x 7.5

Now, we can solve for the principal:

Principal = $720.00 / (0.16 x 7.5)
Principal = $720.00 / 1.2

Dividing $720.00 by 1.2 gives us:

Principal = $600.00

Therefore, the principal amount borrowed by Dr. Collins to buy new furniture for her office is $600.00.