Question

Find the term of the loan is the interest is $453.23

Answer 1

Given:

Principal amount = $9297

rate = 6 1/2 %

Simple interest = $453.23

To calculate the simple interest,

`\begin{gathered} I=\text{PRT} \\ P=9297 \\ I=453.23 \\ R=6(1)/(2)\text{ \%=}(13)/(2)\text{ \%=6.5\%} \end{gathered}`

It gives,

`\begin{gathered} 453.23=9297\cdot(6.5)/(100)\cdot T \\ T=(453.23\cdot100)/(9297\cdot6.5) \\ T=0.75\text{ years} \\ \Rightarrow T=9\text{ months} \end{gathered}`

Answer: The term of the loan is 9 months.