Question

Marcus borrowed 9000 from his bank to buy a car. The bank charged him a simple interest rate of 1.25%. By the time he paid back the money he had pad a total of 9281.25. How long did it take Marcus to pay back the money?

Answer 1

2.5 years

Explanation:

Given data

P=9000

r= 1.25%

A= 9281.25

The simple interest expression is given as

A=P(1+rt)

substitute

9281.25= 9000(1+0.0125*t)

9281.25=9000+112.5t

collect like terms

9281.25-9000=112.5t

281.25= 112.5t

t= 281.25/112.5

t= 2.5

Hence the time is 2.5 years