Question

jay Jenkins takes out a 11.0% simple interest loan today that will be repaid 3 months from now with a payoff amount $8000.00. what amount is jay borrowing?(round to the nearest cent as needed)

Answer 1

In this case, we'll have to carry out several steps to find the solution.

Step 01

Data

M = $8000

r = 11%

t = 3 months

C = ?

Step 02:

I = C * (r /1200) * t

M = I + C

M = C ( 1 + r/1200 * t)

8000 = C (1 + 11/1200 * 3)

8000 = C (1.0275)

8000 / 1.0275 = C

7785.888 = C

The answer is:

The amount borrowed by Jay was $7785.89 .