MATH

Martin takes out a simple-interest loan at 7.5 %. After 6 months, the amount of interest on the loan is $69.64. What was the amount of the loan?

is $522.30 correct

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  1. Interest amount I over a principal P at r% per annum for n years is:
    I=Prn

    69.64=P*0.075*0.5
    Note: 0.075=7.5%, 0.5year=6 months.
    solve for P to get
    P=69.64/(0.075*0.5)=1857.07

    Check:
    Interest = 1857.07*0.075*0.5
    =$69.64 OK.
    =

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