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 money?

Answer 1

hello

3 years. Since no mention of compounding was made I will assume that it's 3.5% simple interest. So first, let's calculate what percent of the entire loan was interest. Just a simply matter of division. 2625 / 25000 = 0.105 = 10.5% Now lets' divide the percentage of the loan that was paid in interest by the interest rate. 10.5% / 3.5% = 3 So the company took 3 years to repay the loan.
Have a nice day

Answer 2

Answer: The company repaid the money in 3 years.

Explanation:

Hi, to solve this problem we have to apply the simple interest formula:

I = P x r x t

where:

I = interest = $2625

P = Principal amount= $25,000

r = interes rate (decimal) = 3.5% = 3.5 / 100 = 0.035

t = time

So, mathematically speaking:

I = P x r x t

2625 = 25,000 x 0.035 x t

2625= 875 x t

2625 / 875 =t

3 years = t

In conclusion, the company repaid the money in 3 years.

Feel free to ask for more if it´s necessary or if you did not understand something.