Answer:
The amount she borrowed is 2500.
Step-by-step explanation:
To find the answer, let’s start with the information we have.
First, in the formula, interest equals principal times rate times time. The interest, I, is four hundred twenty-five dollars, the principal, P, is what we are trying to find, the rate is r, and the time, t, is two years.
Next, the rate, r, is eight point five percent. Change the percent to a decimal by moving the decimal point two places to the left.
Then, multiply point zero eight five and two to get point one seven.
Now, divide both sides of the equation by point one seven. The result is the principal, two thousand five hundred dollars.
The original amount of the loan was 2500.
