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Bernice paid $162 in interest on a loan if $1,800 borrowed at 6%. How long did it take her to pay off the loan?

1 Answer

14 votes

Answer:

1.5 years.

Explanation:

First, converting R percent to r a decimal

r = R/100 = 6%/100 = 0.06 per year,

then, solving our equation

t = 162 / ( 1800 × 0.06 ) = 1.5

t = 1.5 years

The time required to

accumulate simple interest of $ 162.00

from a principal of $ 1,800.00

at an interest rate of 6% per year

is 1.5 years (about 1 years 6 months).

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