## MYP Maths Simple Interest

number, algebra, geometry and trigonometry, statistics and probability, discrete mathematics.

### MYP Maths Simple Interest

MYP Mathematics, Financial Mathematics, Simple Interest

How can we calculate the amount borrowed if the interest paid for this loan is \$14,000 at a rate of 7% per annum over 48 months?

Thanks
Lucas

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Joined: Mon Jan 28, 2013 8:05 pm

### Re: MYP Maths Simple Interest

MYP Maths, Financial Mathematics, Simple Interest

The simple interest is given by the following formula
$I=P \cdot r \cdot n$
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
$\14,000=P \cdot 0.07 \cdot \frac{48}{12}\rightarrow$

$\rightarrow P=\frac{14,000}{0.28}=\50,000$

Hope these help!
nicole

Posts: 0
Joined: Mon Jan 28, 2013 8:10 pm

### Re: MYP Maths Simple Interest

Thanks Nicole!!
Lucas

Posts: 0
Joined: Mon Jan 28, 2013 8:05 pm