Question

Stefani received a loan for $2,000 and now has acquired $720 in interest. If she pays an annual interest of 4.5% on the amount borrowed. how much time has elapsed since Stefani received the loan?

Answer 1

8 years.

Explanation:

First, converting R percent to r a decimal

r = R/100 = 4.5%/100 = 0.045 per year,

then, solving our equation

t = 720 / ( 2000 × 0.045 ) = 8

t = 8 years

The time required to

accumulate simple interest of $ 720.00

from a principal of $ 2,000.00

at an interest rate of 4.5% per year

is 8 years.