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Anne took out a loan for $7500 and was charged at a simple interest rate of 4.7%. The total interest she paid on the loan was $141. How long was the loan in days?

1 Answer

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Answer: the loan was 146 days

Explanation:

The formula for simple interest is expressed as

I = PRT/100

Where

P = principal or amount loaned

R = interest rate

T = time in years.

I = interest

From the information given,

P = $7500

R = 4.7%

The total interest she paid on the loan was $141. Therefore,

I = $141. Therefore,

141 = (7500×4.7×T)/100

141 = 352.5T

T = 141/352.5 = 0.4 years

Assuming 1 year = 365 days,

0.4 years will be 0.4×365 = 146 days

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