Question

Joanne and ed greenwood built a new barn with an attached arena. to finance the loan, they paid $1,306 interest on $48,300 at 4%. what was the time, using exact interest?

Answer 1

To finance the loan with exact interest, it takes approximately 9.536 years.

Step-by-step explanation:

To find the time it takes to finance the loan, we can use the formula for simple interest: I = P * r * t, where I is the interest, P is the principal amount, r is the interest rate, and t is the time in years.

In this case, the interest is $1,306, the principal is $48,300, and the interest rate is 4%. Let's plug these values into the formula and solve for t:

$1,306 = $48,300 * 0.04 * t

Dividing both sides by $48,300 * 0.04, we get:

t = $1,306 / ($48,300 * 0.04) = 9.536 years

Therefore, it takes approximately 9.536 years to finance the loan using exact interest.