Question

Find the term of a loan of $225 at 3.5% if the simple interest is $63.

Answer 1

Answer: 8

Explanation:

The formula to calculate the simple interest is given by :-

`S.I. =Prt`, where P is the principal amount , r is rate of interest and t is time.

Given: The principal amount : P = $225

The rate of interest : r = 3.5% =0.035

Simple Interest : SI = $63

Put these value in the above formula , we get

`63=225*0.035t\\\\\Rightarrow\ t=(63)/(225*0.035)\\\\\Rightarrow\ t=8`

Hence, the term of loan = 8