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ssume That All Interest Is Simple Interest. Berger Car Rental Borrowed $8862 At 352% Interest To Cover The Increasing Cost Of Auto insurance. Find the term of the loan if the interest is $75.33

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Final answer:

The term of the loan, with the principal of $8862 at a 352% interest rate for an accrued interest of $75.33, is calculated to be approximately 0.88 days using the simple interest formula. However, this is an unusually short term and suggests there may be a typo in the provided information.

Step-by-step explanation:

The question is asking to determine the term of the loan given the amount of interest accrued on a simple interest rate loan. To find the term of the loan, we need to rearrange the simple interest formula which is I = Prt, where I is the interest, P is the principal amount, r is the annual interest rate, and t is the time in years.

Firstly, to find the term (t), we must isolate t in the formula: t = I / (Pr).

Given that the principal amount (P) is \$8862, the simple interest (I) is \$75.33, and the annual interest rate (r) is 352% (or 3.52 as a decimal), we can substitute these values into the formula to calculate the term of the loan:

t = \$75.33 / (\$8862 \times 3.52) = 0.0024 years, which when converted to days (as the time period seems to be less than a year), t = 0.0024 \times 365 \approx 0.88 days.

This result suggests that the loan term is less than one day which is unusual; therefore, it's likely that there is either a typo in the interest rate provided or additional context is needed to understand the term correctly.

User Bob White
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