jennifer stemberg borrowed money to buy a car at 13.5% simple interest from her credit union. If the loan was repaid in 2 years and the amount of interest was $ 2,700, how much did jennifer borrow?
To find the amount Jennifer borrowed, we need to use the formula for simple interest:
Interest = Principal * Rate * Time
In this case, we are given the interest ( $2,700 ), the rate (13.5%), and the time (2 years). We need to find the principal, which represents the amount Jennifer borrowed.
Let's denote the principal as P. We can rearrange the formula to solve for P:
Interest = Principal * Rate * Time
Plugging in the given values:
$2,700 = P * 0.135 * 2
Now, let's solve for P:
$2,700 = 0.27P
Dividing both sides of the equation by 0.27:
$2,700 / 0.27 = P
P ≈ $10,000
Therefore, Jennifer borrowed approximately $10,000.