Given:
Interest = $5,250
Time, t = 5 years
Interest rate = 7.5% = 0.075
Let's find the original amount borrowed.
Apply the formula:
[tex]I=PRT[/tex]Here, we are to find the principal P.
Rewrite the formula for P:
[tex]P=\frac{I}{RT}[/tex]Where:
I = 5250
R = 0.075
T = 5
Thus, we have:
[tex]\begin{gathered} P=\frac{5250}{0.075*5} \\ \\ P=\frac{5250}{0.375} \\ \\ P=14000 \end{gathered}[/tex]Therefore, the original amount borrowed was $14000.
ANSWER:
$14000
