Answer:
Explanation:
Alice borrowed 16700 from the bank at a simple interest rate of 9% to purchase a used car. It means that the interest is not compounded. Simple interest is usually expressed per annum. The formula for simple is
I = PRT/100
Where
I = interest
P = principal(amount borrowed from the bank)
R = 9% ( rate at which the interest is charged
T = number of years
At the end of the loan,she had paid a total of 24215. This means that the interest + the principal = 24215
Therefore,
The interest = 24215 - 16700 = 7515
Therefore
7517 = (16700 × 9 × t)/100
751700 = 150300t
T = 751700/150300
T = 5 years
Converting 5 years to months,
1 year 12 months
5 months = 12 × 5 = 60 months