Linda Davis agreed to lend money to Alex Luciano at a special interest rate of 7% per year, on the condition that he borrow enough that he would pay her 1000 in interest over a period of 6 years. What was the minimum amount Alex could borrow?
Solution:-
The interest rate is 7% per year, the interest is 1000, the time is 6 years. The principal is the missing value. The appropriate formula
is P = 
.
Substitute the given values into the formula. Use decimal notation for the interest rate.
P = 
Evaluate the value of P and round the answer to the nearest cent.
P =
2380.95
Thus, the minimum amount Alex could borrow is 2380.95.