Daniels mortgage statement showed he would pay $12,450 in interst for a 10- year loan at 5.5% How much did Daniel borrow?

To find out how much Daniel borrowed, we'll use the formula for simple interest. The formula for simple interest is:

\[
I = P \times r \times t
\]

Where:
- $I$ is the interest paid (\$12,450),
- $P$ is the principal amount (the amount borrowed),
- $r$ is the annual interest rate (5.5% or 0.055 as a decimal),
- $t$ is the time period in years (10 years).

We need to solve for $P$:

\[
P = \frac{I}{r \times t}
\]

Substituting the values we have:

\[
P = \frac{12,450}{0.055 \times 10}
\]

Now, let's calculate it:

\[
P = \frac{12,450}{0.55} = 22,636.36
\]

So, Daniel borrowed **$22,636.36**.

Would you like more details or have any questions?

---

Here are some related questions you might consider:

1. What would the interest be if Daniel borrowed for 15 years instead of 10?
2. How much would Daniel borrow if the interest rate was 4.5% instead of 5.5%?
3. What is the total amount Daniel will pay back after 10 years?
4. How would the interest change if the loan amount was $30,000 at 5.5% for 10 years?
5. What is the principal if the interest is $20,000 for 15 years at 6%?

**Tip:** When calculating interest, always ensure that the interest rate is in decimal form (e.g., 5.5% becomes 0.055).

Learn how to calculate the principal amount Daniel borrowed using the simple interest formula. This problem involves calculating the principal amount based on given interest, interest rate, and time period. Suitable for high school students and learners interested in financial mathematics.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation