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Homework answers / question archive / Miguel borrowed money from a credit union for 6 years and was charged simple interest at an annual rate of 6%
Miguel borrowed money from a credit union for 6 years and was charged simple interest at an annual rate of 6%. The total interest that he paid was $72. How much money did he borrow?
Given,
Interest rate (R) = 6%
Period of time (T) = 6 Years
Total interest earned (SI) = $72
SI = (P*T*R) /100
Here, We need principal (P)
So,
P = SI*100/(T*R)
= 72 * 100/(6*6%)
= 7200/36
= $200
Therefore Miguel borrowed $200.
