A finance company charges $55 simple interest on
a sum of money which is borrowed for five months.
Given that the rate of interest is 12% per annum,
find the sum of money.
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Answer:
The borrowed amount was $1,100
Step-by-step explanation:
simple interest = principal * rate * time
time = 5 months out of 12, or 5/12
let 'x' represent the borrowed amount, then:
55 = x * 0.12 * (5/12)
x = 1100
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