Solve the problem. Assume that simple interest is being calculated in each case. Round the answer to the nearest cent
unless otherwise indicated.
-Martin takes out a simple interest loan at 4 %. After 10 months the amount of interest on the loan is $80.93. What was the amount of the loan? Round to the nearest dollar.

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The formula for simple interest is I = Prt, where I is the interest, P is the principal amount (the initial amount of the loan), r is the annual interest rate (as a decimal), and t is the time in years. Given I = $80.93, r = 4% = 0.04, and t = 10/12 years (since 10 months is 10/12 of a year), we can solve for P: $80.93 = P(0.04)(10/12). Solving for P gives P = $2427.80, which rounds to $2428.

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