Simple Interest Question?

Please I need help with this question

Martha lent Aaron money 3 years ago at a simple interest rate of 14%. He repaid her in full plus interest of $399. How much did she lend him 3 years ago?

-Thanks

2 Answers

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  • Anonymous
    9 years ago
    Best Answer

    P = principal

    I = interest earned annually

    Want P + 3I = 399

    Also, we know that I = 0.14P

    So, P + 3(0.14)P = 399

    1.42 P = 399

    P = 399 / 1.42 <---- amount loaned 3 years ago

  • Anonymous
    9 years ago

    Oh my goodness. I'm completely blanking. I just learned this 2 months ago in math class. Damn, if my Math teacher was here, he would be yelling at me. Sorry.

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