Question

3. A man needed money for college. He borrowed $6,000 at 14% simple interest per year. If he paid $420 interest, what was the duration of the loan?

Answer 1

The duration of the loan was 0.5 years, or 6 months, calculated using the simple interest formula with the given values of $6,000 principal, 14% interest rate, and $420 interest paid.

Step-by-step explanation:

To calculate the duration of the loan, we need to use the formula for simple interest which is I = PRT, where I is the interest, P is the principal amount, R is the rate of interest per year, and T is the time period in years.

The man borrowed $6,000 at 14% simple interest per year and paid $420 in interest. Using the formula, we get: $420 = $6,000 * 14% * T. To find T, we rearrange the formula to T = I / (P * R), which gives us T = $420 / ($6,000 * 0.14) T = $420 / $840 T = 0.5 years.

Therefore, the duration of the loan was 0.5 years, which is equivalent to 6 months.

Answer 2

Answer: half year

Step-by-step explanation:

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

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

Given : I=420 ; r=14%=0.14 and P =$6000

Then, we have the following equation :-

`420=6000*0.14 * t\\\\\Rightarrow\ t=(420)/(6000*0.14)=0.5`

It means the duration of the loan is half year .