Answer:
Joe's father borrowed $1,875.
Step-by-step explanation:
The simple interest formula is [tex]I = Prt[/tex]
[tex]I[/tex] is the interest.
[tex]P[/tex] is the principal amount.
[tex]r[/tex] is the rate.
[tex]t[/tex] is the time in years.
Since we want to know how much money he borrowed that would be considered the prinicipal amount. Therefore, we need to manipulate the formulate so that it equal [tex]P[/tex] instead of [tex]I[/tex].
We simply need to divide the rate and time from both sides of the equation in order to single out [tex]P[/tex].
[tex]I = Prt[/tex]
[tex]I(\frac{1}{rt} ) = Prt(\frac{1}{rt})[/tex]
[tex]\frac{I}{rt}=P[/tex]
Now plug in the given information into our formula.
[tex]P= \frac{300}{0.16*1}[/tex]
[tex]P = 1875[/tex]
Therefore, Joe's father borrowed $1,875.
