How much money was borrowed by Leila four years ago if at present she paid a total of 31,000 pesos at a simple interest rate of 6 percent

To find how much money Leila borrowed four years ago, we can use the simple interest formula:

\[
A = P(1 + rt)
\]

Where:
- \( A \) is the total amount paid (31,000 pesos),
- \( P \) is the principal amount (the amount borrowed, which we are trying to find),
- \( r \) is the interest rate per year (6% or 0.06),
- \( t \) is the time in years (4 years).

Now, let's solve for \( P \):

\[
31,000 = P(1 + (0.06 \times 4))
\]
\[
31,000 = P(1 + 0.24)
\]
\[
31,000 = P(1.24)
\]
\[
P = \frac{31,000}{1.24}
\]
\[
P \approx 25,000
\]

Leila borrowed approximately 25,000 pesos four years ago.

Would you like more details or have any other questions? Here are some related questions for further exploration:

1. What would happen if the interest rate was compounded annually instead of simple interest?
2. How much interest did Leila pay over the four years?
3. How would the amount change if the loan period was extended to 5 years?
4. What is the formula for compound interest, and how does it differ from simple interest?
5. What is the impact of different interest rates on a loan amount?

**Tip:** Always double-check the type of interest (simple vs. compound) when solving interest-related problems, as it can greatly affect the final amount paid.

How much money was borrowed by Leila four years ago if at present she paid a total of 31,000 pesos at a simple interest rate of 6 percent?

Discover how to calculate the original amount Leila borrowed using the simple interest formula. With a total payment of 31,000 pesos and a 6% annual interest rate over 4 years, this solution guides you step-by-step to find the loan amount. Perfect for high school students learning simple interest calculations.

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