Question

A $1,500 loan has an annual interest rate of 4 1/4% on the amount borrowed. How much time has elapsed if the interest is now $127.50?

Answer 1

2 years

Explanation:

Given : A $1,500 loan has an annual interest rate of 4 1/4% on the amount borrowed.

To Find : How much time has elapsed if the interest is now $127.50?

Solution :

Formula of simple interest : principal *rate *time

Principal = $1,500

Rate (in decimals )
`4(1)/(4*100) =(17)/(4*100) =0.0425`

Time (in years)

Simple interest = $127.50

Putting values in formula

$127.50 = 1500*0.0425*time

127.50 = 63.75*time

`(127.50)/(63.75)` = time

2 years = time

Thus time will be 2 years

Answer 2

$
`127.50=1,500(0.0425)*x`

$
`127.50 = 63.75 *x`


`x = (127.50)/(63.75)`


`x = 2`

2 years elapsed.

hope this helps!