MYP Mathematics - Simple Interest

[Lucas]

MYP Mathematics, Financial Mathematics, Simple Interest

How can we calculate the amount borrowed if the interest paid for this loan is $3000 at a rate of 5% per annum over 24 months?

Thanks

[miranda]

The simple interest is given by the following formula




Where I is the amount of interest, P is the principal, r is the simple interest rate per annum and n is the time in years.
Regarding your question about the calculation of the simple interest we have that




Hope these help!

[Lucas]

thanks miranda!!

[Lucas]

thanks miranda!!