Compute the specified quantity. Your total payment on a 6 year loan, which charged 7.5% annual simple interest, amounted to $20,460. How much did you originally borrow (in dollars)? (Round your answer to the nearest cent.)
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Step 1
The formula for simple interest is I = PRT, where I is the interest, P is the principal, R is the rate, and T is the time. We know the total payment ($20,460), the interest rate (7.5% or 0.075 as a decimal), and the time (6 years). We need to find the principal. Show more…
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