How much was borrowed if the interest at 8% after 3 months is P6,000.00?
Question
How much was borrowed if the interest at 8% after 3 months is P6,000.00?
Solution
To solve this problem, we need to use the formula for simple interest which is I = PRT, where:
I = Interest P = Principal amount (the initial amount of money) R = Rate of interest T = Time the money is borrowed for
In this case, we know:
I = P6,000.00 R = 8% or 0.08 (in decimal form) T = 3 months or 0.25 (in years, since 3 months is a quarter of a year)
We need to find P. So, we rearrange the formula to solve for P:
P = I / (R * T)
Substituting the given values:
P = P6,000.00 / (0.08 * 0.25)
P = P6,000.00 / 0.02
P = P300,000.00
So, the amount that was borrowed is P300,000.00.
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