Question

Ryan borrowed money from the bank for 3 years. At the time the bank had an interest rate of 4.25%. He ended having to pay 102$ in interest. How much money did Ryan borrow. Show all work!

Answer 1

Okay so here is the formula:\[\Large Interest = Principle \times {Rate} ^ {Time}\] We know Interest = $102, Rate = 4.25%, and Time = 3 years.

So can you plug these into the formula and solve for Principle?

Answer 2

0.00783?

Answer 3

That's less than a cent. No way is he borrowing less than a cent from a bank and paying $102 interest on it.

Answer 4

No nvm 13.oo5

Answer 5

Because you have to convert the rate to a decimal

Answer 6

That looks better.

Answer 7

I converted it to 0.0425

Answer 8

Okay Thanks guys! 😊