To determine the term length of the loan, we need to calculate the interest paid per year and then divide the total interest ($720) by the interest paid per year.
The interest paid per year can be calculated using the formula: Interest = Principal * Rate.
Let's denote the term length as "T" (in years). The principal amount is $3,000, and the interest rate is 12% or 0.12.
Interest Paid Per Year = Principal * Rate
Interest Paid Per Year = $3,000 * 0.12
Interest Paid Per Year = $360
Now, to find the term length (T), we divide the total interest ($720) by the interest paid per year ($360).
T = Total Interest / Interest Paid Per Year
T = $720 / $360
T = 2 years
Therefore, the term length for this loan is 2 years.