Answer: Josh borrowed $ 876 to buy the computer.
Step-by-step explanation:
Formula for simple interest : I = Prt
, where P = principal amount
r= rate of interest ( in decimal)
t=time (in years)
Total amount with simple interest to pay : A = P+I
⇒ A = P +Prt
⇒ A = P(1 +rt) (i)
As per given , A = $1,244.34
r= 12.4% = 0.124
t= 3 years
Now, put these values in (i) , we get
[tex]1244.34=P(1+0.124)^3\\\\\Rightarrow\ 1244.34=P(1.124)^3\\\\\Rightarrow\ 1244.34=P(1.420034624)\\\\\Rightarrow\ P=\dfrac{1244.34}{1.420034624}\\\\\Rightarrow\ P=876.27[/tex]
Hence, Josh borrowed $ 876 to buy the computer.
