Question

HELP!!

Lily just paid off a $400 loan. She had to pay $60 in interest at a simple annual interest rate of 5%. How many years did Lily have this loan?

A. 2
B. 3
C. 4.5
D. 5

Answer 1

I=prt,,60=400*0.05t,,t=3 ..................

Answer 2

Answer: The correct option is (B) 3.

Step-by-step explanation: Given that Lily just paid off a $400 loan. She had to pay $60 in interest at a simple annual interest rate of 5%.

We are to find the number of years for which Lily had this loan.

Let n be the required number of years.

Also, P = $400, S.I. = $60 and r% = 5%.

Therefore, by the formula of simple interest, we have

`S.I.=(Prn)/(100)\\\\\\\Rightarrow 60=(400*5* n)/(100)\\\\\\\Rightarrow n=(60)/(20)\\\\\\\Rightarrow n=3.`

Thus, the required number of years is 3.

Option (B) is CORRECT.