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Suppose you take out a loan for $9,000, at 12% ordinary interest. If the amount of interest is $762.00, what is the time period? (Round any fraction to the next higher day) a. 254 days b. 246 days c. 258 days d. 250 days

2 Answers

3 votes

Answer:

Option b - 246 days.

Explanation:

Given : Suppose you take out a loan for $9,000, at 12% ordinary interest. If the amount of interest is $762.00.

To find : What is the time period?

Solution :

We are going to apply interest formula which is given as,


A=P(1+r)^t

Where, I is the amount of interest I=$762

P is the principal value P=$9000

r is the interest rate r=12%=0.12

t is the time period

Amount is A=P+I=9000+762=$9762

Substitute the value in the formula,


9762=9000(1+0.12)^t


(9762)/(9000)=(1.12)^t


1.0846=(1.12)^t

Taking log both side,


\log(1.08)=t\log(1.12)


t=(\log(1.08))/(\log(1.12))


t=0.679

Converting time from year into days,


t=0.679* 365\approx246

Therefore, Option b is correct.

User Amazing User
by
7.6k points
2 votes

Answer:

answer is option c

Explanation:

Amount = $9,000

interest rate (r) = 12%

interest = $762.00

time = ?

we know,


I = (PRT)/(100)


762  = \frac {9000* 12* T}{100}

t = 0.7056 years

t = 0.7056 × 365 days

t = 257.54 days ≅ 258 days

correct answer is option c.

User PhML
by
7.6k points
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