Solve the given problem, using a decimal equation and the formula I = PRT: How much money could you borrow at 6.5% for 4 years if you were to pay $1,955.20 in interest?
A)$26.07
B)$7,520
C)$752
D)$260.69

Question

Quizplus · Accepted Answer

We can use the formula I = PRT to solve for P (the principal or amount borrowed).

I = PRT

$1955.20 = P(0.065)(4)

$1955.20 = 0.26P

P = $7520

Therefore, you could borrow $7520 at 6.5% for 4 years if you were to pay $1955.20 in interest. The correct answer is choice B.

Solve the Given Problem, Using a Decimal Equation and the Formula