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Ahmad took out a loan for 146 days and was charged simple interest at an annual rate of 12.5%.
The total interest he paid on the loan was $245.
How much money did Ahmad borrow?

Respuesta :

Answer:

$488778

Step-by-step explanation:

For a for interest is;

i = PRT/100

Where;

R is rate

P is Principal

T is time

i is interest

We are given;

R = 12.5% = 0.125.

T = 146 days = (146/364) = 0.4011

i = $245

Thus;

245 = (P × 0.125 × 0.4011)/100

Thus;

P = (245 × 100)/(O.125 × 0.401)

P = $488778