Sam borrowed money from a credit union for 2 years and was charged simple interest at an annual rate of \( 7 \% \). The total interest that he paid was \( \$ 840 \). How much money did he borrow? If necessary, refer to the list of financial formulas.

To find out how much money Sam borrowed, we can use the formula for simple interest: \[ I = P \times r \times t \] where: - \( I \) is the total interest paid, - \( P \) is the principal amount (the amount borrowed), - \( r \) is the annual interest rate (in decimal form), - \( t \) is the time in years. From the problem, we know: - \( I = 840 \) (the total interest paid), - \( r = 7\% = 0.07 \) (the annual interest rate), - \( t = 2 \) years (the time period). We need to find \( P \). Rearranging the formula to solve for \( P \): \[ P = \frac{I}{r \times t} \] Now, substituting the known values into the formula: \[ P = \frac{840}{0.07 \times 2} \] Calculating the denominator: \[ 0.07 \times 2 = 0.14 \] Now substituting back into the equation for \( P \): \[ P = \frac{840}{0.14} \] Calculating \( P \): \[ P = 6000 \] Thus, the amount of money Sam borrowed is \( \boxed{6000} \).