Victor borrowed money at 5 point 2 5 percent simple annual interest. At the end of the year, the interest on the loan is 255 point 9 4 dollars What was the amount of the loan?
Answer
A
13 point 4 4 dollars
B
1 dollars comma 343 point 6 9
C
134 point 3 7 dollars
D
4 dollars comma 875 point 0 5
Explanation
For simple interest, use I = Prt. Since the loan lasted one year, P = 255.94 ÷ (0.0525 × 1) ≈ 4,875.05. The loan amount was $4,875.05, choice D.
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