Finding the principal, rate, or time for a simple interest loan whose term i... Kevin took out a loan for 225 days and was charged simple interest at an annual rate of \( 7.3 \% \). The total interest he paid on the loan was \( \$ 117 \). How much money did Kevin borrow? Assume that there are 365 days in a year, and do not round any intermediate computations. If necessary, refer to the list of financial formulas.

To find out how much money Kevin borrowed, we can use the simple interest formula: \[ I = P \times r \times t \] where \( I \) is the interest paid, \( P \) is the principal amount borrowed, \( r \) is the annual interest rate (expressed as a decimal), and \( t \) is the time in years. Kevin paid \( \$ 117 \) in interest, the rate is \( 7.3\% \) or \( 0.073 \), and he borrowed the money for \( 225 \) days, which is \( 225/365 \) years. Plugging in these values, we can rearrange the formula to solve for \( P \): \[ 117 = P \times 0.073 \times \frac{225}{365} \] Now, calculate \( \frac{225}{365} \) which equals approximately \( 0.6164 \). Now substituting back into the equation: \[ 117 = P \times 0.073 \times 0.6164 117 = P \times 0.0450 P = \frac{117}{0.0450} P \approx 2600 \] So, Kevin borrowed approximately \( \$ 2600 \). In 1933, the U.S. Congress established the Federal Housing Administration (FHA), which aimed to boost home ownership by making mortgages more accessible through simpler interest terms and lower down payments. This transformative initiative prompted a surge in consumer borrowing and investment in housing, forever changing the American landscape and promoting the idea of home as a financial asset, not merely a shelter. When drawing up loan agreements, it's crucial to ensure math is checked twice! It's easy to make a mistake with unit conversions, especially with time where days or months may vary. Always double-check whether you’re using days, months, or years to avoid miscalculating your principal or interest amounts, which can lead to overdrafting funds when payments come due.