Question

Jina borrowed $9000 from a lender that charged simple interest at an annual rate of 6%. When Jina paid off the loan, she paid $2160 in interest. How long was the loan for, in years?

Answer 1

By using the simple interest formula, I = PRT, we determined that Jina's loan was for 4 years when she paid $2160 in interest on a $9000 loan at a 6% annual interest rate.

Step-by-step explanation:

To figure out how long Jina's loan was for, we can use the formula for calculating simple interest: I = PRT, where I represents the interest paid, P is the principal amount (the initial amount of the loan), R is the annual interest rate (in decimal form), and T is the time in years the money is borrowed for.

To solve for T, we can rearrange the formula to T = I / (PR). We know that Jina paid $2160 in interest (I), borrowed $9000 (P), and the annual interest rate is 6% or 0.06 in decimal form (R).

T = 2160 / (9000 * 0.06) = 2160 / 540 = 4.

Hence, Jina had the loan for 4 years.