Money is borrowed at ​18% simple interest. After one​ year, ​$913.32 pays off the loan. How much was originally​ borrowed?

Answer 1

The underlying formula you want to use to solve this one is

P = A / (1 + rt)

for this set of information we have

P = 913.32 / (1 + 0.18*1)

P = 913.32 / 1.18

P = 774

meaning that the original amount borrowed was $774