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William meller has a 180-day loan from his bank to pay for a new swimming pool.

Business & Finance
Tutor: None Selected Time limit: 0 Hours

his loan's maturity value is 30,640 and he is paying 10% exact interest. how much did he borrow?

Apr 20th, 2015

Let x = borrowed amount. Let 0.10x = amount of interest (in dollars) William must pay at loan maturity. At maturity, he must pay back the borrowed amt (x) plus the interest on the borrowed amount (0.10x). So, at maturity, he must pay back x + 0.10x, but (according to the problem statement) this equals 30,640. So, we must solve the following equation: 30640 = x + 0.10x, but the right hand side can be factored into 1.10x, so now we need to solve the equation 30640 = 1.10x. Divide both sides of the equation by 1.10, getting x = 27854.55. You can check this by applying the information you are given in the problem statement.  

Apr 20th, 2015

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