Alan borrowed money from a credit union for 5 years and was charged simple interest at an annual rate of 8% . The total interest that he paid was 2000. much money did he borrow? If necessary, refer to the list of financial formulas.

To solve this problem, we can use the formula for simple interest: Where:- is the principal amount (the amount borrowed)- is the annual interest rate- is the time in yearsGiven:- The total interest paid ( ) is ) is 8%- The time ( ) is 5 yearsWe need to find the principal amount ( ).Rearranging the formula to solve for : Substituting the given values: Therefore, Alan borrowed $5000.