Certainly! Let's work through this step-by-step to find out how much Mo borrowed to buy the car using the information given in the problem.
### Step-by-Step Solution:
1. Identify the given information:
- Total interest paid: \($7,683.20
- Loan period (Time): 5 years
- Simple interest formula: Interest = Principal Rate Time
2. Understand what needs to be found:
- Principal amount (P): This is the amount Mo originally borrowed.
3. Assume the interest rate:
- Since the interest rate is not provided, we need to assume a reasonable annual interest rate. For this example, let's assume an annual interest rate of 5% (or 0.05 as a decimal).
4. Use the formula for simple interest:
- The formula for simple interest is:
\[
\text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time}
\]
- Rearrange the formula to solve for the Principal:
\[
\text{Principal} = \frac{\text{Interest}}{\text{Rate} \times \text{Time}}
\]
5. Substitute the given values and assume rate:
- Interest (I) = $\)7,683.20
- Rate (R) = \(\(0.05\)\)
- Time (T) = 5 years
- Thus, the formula becomes:
\(\[
\text{Principal} = \frac{7,683.20}{0.05 \times 5}
\]\)
6. Calculate the principal:
- Multiply the rate and the time:
\(\[
0.05 \times 5 = 0.25
\]\)
- Divide the interest by the product of the rate and the time:
\(\[
\text{Principal} = \frac{7,683.20}{0.25} = 30,732.80
\]\)
### Conclusion:
Mo borrowed \($30,732.80 to buy the car.
So, the principal amount Mo borrowed is $\)30,732.80.
