A person borrowed an amount of money for a year at an interest rate of 12%. If the total interest is $1500, what was the original borrowed amount?
Thoughts? Step-by-step reasoning:
Let X be the price of the borrowed amount. The interest is X * .12 = $1500. So the borrowed amount is X = $1500 / .12 = $12500.
Thus, the answer is 12500.