Money is borrowed at 9% simple interest. After 1 yea, $6213 pays off the loan. How much was originally borrowed?

Question

Interest=principle•rate•time

Answer 1

1.09 times X (variable)=$6213.00

Divide both sides by 1.09

 

X=$6213/1.09= $5700 (amount borrowed)

 

(another way to look at this)

 

.09 times X (variable)=$6213.00 minus X

Add X to each side......... X + .09X=$6213

1.09X=$6213

Divide Both sides by 1.09=X= $5700

Answer 2

Sum/Final amount = $ 6213

              Rate       = 9% p.a.

              Time      = 1 year

 

let the Principal be P

 

           Interest = Principal*Rate*Time

 

and  Sum/Final amount = Principal + Interest

 

               final amount = Principal + Principal*Rate*Time

                         6213  = P + P*9/100*1

                                  =( 100 P + 9P) /100

                  6213*100 = 109 P

                    621300   = 109 P

               621300/109 = P

                     5700      =  P

 

 

So $5700 was borrowed initially.