Question

Leo paid $2400 in interest on an amount borrowed for 10 years at a 4% annual simple interest rate.



How much did Leo borrow? $6000?

Answer 1

@mathmale

Answer 2

You are correct! If you want to check your answer, you can work backwards. For instance,

$6,000 x 0.04 = $240 dollars. That means he paid $240 each year. Since it is saying it is 10 years, multiply by 10 to get to $2400.

To get the answer in the first place, just divide 2400 by 10 to get 240. Then divide once more by .04 to get $6000.

Hope this helped!