Question

determine the time (in a years and days) it would take for a $36,000 loan at a rate of 3% to cost the borrower $400 in interest?

Answer 1

Interest is the return earned on an investment.
I = P * r * t
I - interest ( I = $400 ),
P - principal ( P = $36,000 ) ,
r - rate ( r = 3$ = 0.03 ).
400 = 36,000 * 0.03 * t
400 = 1,080 t
t = 400 : 1,080 = 0.37 years.
0.37 * 365 = 135.05 ≈ 135 days
Answer: The time is 0.37 years or 135 days.