# 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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