Simple Algebra 2 problem?
It's extremely easy to a lot of people.. but I really suck at word problems! So can you help and explain this to me?
7. Money is borrowed at 11% simple interest. After 1 year 721.50$ pays off the loan. How much was borrowed originally? The answer is 650$.. how do you get that answer?
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If you borrow 100 $ @ 11% simple you will pay back the loan = 100 + 11 = 111 $ after 1 year.
So if111$ is repaid principal is 100 $
If 721.50 $ is repaid principal = 721.50 X 100/111 = 650 $ ANSWER