Your total payment on a 8-year loan, which charged 7.5% simple interest, amounted to $33,000. How much did you originally borrow Round your answer to the nearest cent.
A) $P V = \$ 20,635.00$
B) $P V = \$ 20,627.00$
C) $P V = \$ 20,624.00$
D) $P V = \$ 20,625.00$
E) $P V = \$ 20,630.00$

Question

Your total payment on a 8-year loan, which charged 7.5% simple interest, amounted to $33,000. How much did you originally borrow  Round your answer to the nearest cent.
A) $P V = \$ 20,635.00$
B) $P V = \$ 20,627.00$
C)   $P V = \$ 20,624.00$
D)   $P V = \$ 20,625.00$
E) $P V = \$ 20,630.00$

Quizplus · Accepted Answer

The formula for total payment with simple interest is $Total = P(1 + rt)$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. Given a total payment of $33,000, an interest rate of 7.5% (or 0.075 in decimal form), and a time period of 8 years, we can solve for $P$ as follows: $33,000 = P(1 + 0.075 \times 8)$. Simplifying, we get $33,000 = P(1 + 0.6)$, so $33,000 = P \times 1.6$. Solving for $P$, we find $P = 33,000 / 1.6 = 20,625$, hence the correct answer is $P V = \$ 20,625.00$.

Your Total Payment on a 8-Year Loan, Which Charged 7 PV=$20,635.00P V = \$ 20,635.00PV=$20,635.00

Your Total Payment on a 8-Year Loan, Which Charged 7 $P V = \$ 20,635.00$