Question

A company borrowed 25,000 at 3.5 % and was charged 2,625 in interest. How long was it before the company repaid the loan?

Answer 1

`\bf ~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\dotfill&2,625\\ P=\textit{original amount deposited}\dotfill & \$25,000\\ r=rate\to 3.5\%\to (3.5)/(100)\dotfill &0.035\\ t=years \end{cases} \\\\\\ 2625=(25000)(0.035)t\implies \cfrac{2625}{(25000)(0.035)}=t\implies 3=t`

Answer 2

The number of years = 3 years

Explanation:

Points to remember

Simple interest

I = PNR/100

Where P - Principle amount

N - Number of years

R - Rate of interest

To find the number of years

Here P = 25,000

R = 3.5% and I = 2625

I = PNR/100

N = (I * 100)/PR

= (2625 * 100)/(25000 * 3.5)

= 3 years

Therefore number of years = 3 years