Question

Your friend loans you $550 to buy a PS5. They are going to charge you 3% interest rate. After some time you pay your friend back the $550 plus $33 in interest. How long did it take you to pay your friend back?

Answer 1

2 years

Explanation:

3% of $550 = 0.03 * $550 = $16.50

3% interest on $550 for 1 year is $16.50

$33/$16.50 = 2

Since 2 * $16.50 = $33, the loan was for 2 years.