Question

Dave borrowed $5800 from his uncle with simple interest of 11% and

eventually repaid $8990 (principal and interest). What was the time period of the loan?

Answer 1

The time period of the loan was 0.5 years.

Step-by-step explanation:

Let's break down the problem step by step:

1. First, we need to find the amount of interest that Dave paid. To do this, we can subtract the principal amount from the total amount repaid. In this case, $8990 - $5800 = $3190.
2. Next, we can use the formula for simple interest: Interest = Principal × Rate × Time. We know the principal ($5800) and the interest ($3190), and we need to find the time period. We can rearrange the formula to solve for time: Time = Interest / (Principal × Rate).
3. Substituting the values in, we get: Time = $3190 / ($5800 × 0.11) = 0.5.

Therefore, the time period of the loan was 0.5 years.