Answered

Errol loaned Marvin some money at the rate of 7% interests per year when Marvin paid back the loan at the end of three years, he had to pay a P12,000 interest. How much money did he borrow?

Sagot :

Principal or amount borrowed = [tex] \frac{12,000}{1+ (0.07)(3)} [/tex]

Principal = [tex] \frac{12,000}{1 + 0.21 } [/tex]

Principal = [tex] \frac{12,000}{1.21} [/tex]

Principal = 9,917.36 or 9.917.00

ANSWER:  Marvin borrowed 9,917.00

Check:

I = (P) (R) (T)
12,000 - 9,917.00 = (9,917.00) (0.07) (3)
2,083 = 2,082.57
2,083 = 2,083