Answer :
Answer: $568
Step-by-step explanation:
To determine the original amount of money borrowed, we can use the formula for simple interest:
A = P(1+rt), where:
- A is the total amount paid after interest
- P is the principal amount (the original amount borrowed)
- r is the annual interest rate (as a decimal)
- t is the time in years
We are given:
- A = $607.76
- r = 0.07 (7% interest rate)
- t = 1 year
Let's substitute these values into the formula:
607.76 = P(1+0.07·1)
Solve for P:
607.76 = P(1+0.07)
607.76 = P +0.07P
607.76 = 1.07P
P = 607.76/1.07
P = 568