Bernice paid $192 in interest on a loan she took out at a rate of 6% for a period of one year. How much did she borrow?
I = PRT
192 = P * 0.06 * 1
Solve for P.
Aba
To find out how much Bernice borrowed, we need to use the formula for calculating simple interest. The formula is:
Interest = (Principal * Rate * Time)
Where:
- Principal is the amount borrowed
- Rate is the interest rate
- Time is the period in years
In this case, we know the interest paid ($192), the rate (6%), and the time (1 year). We can rearrange the formula to solve for the principal:
Principal = Interest / (Rate * Time)
Let's substitute the given values into the formula:
Principal = $192 / (0.06 * 1)
Now we can calculate:
Principal = $192 / 0.06
Principal = $3,200
Therefore, Bernice borrowed $3,200.