00:01
After three years, you ended up owing $50 ,000, $8 ,860 on a three -year loan that charged 8 .5 % annual interest.
00:11
How much did you originally borrow? well, to get this, to find out what you owed, you had to take your principal, which would be your present value, plus the interest on that principle.
00:24
So how do you find the interest on that principle? where you're going to take your present value, and i'm just put p instead of pv, so we don't get too many variables.
00:33
Your principal times your rate times your time.
00:36
Well, we know our rate is going to be 0 .085.
00:39
We know our time is three years.
00:42
So now we have 50 ,860 is going to be the original amount, plus the interest, which is going to be...