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21 votes
21 votes
How long will it take for a home improvement loan for 22,800to earn interest of 608.00at 8 %ordinary interest

User Surrena
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1 Answer

19 votes
19 votes

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Answer:

120 days

Explanation:

Using the formula for simple interest, we can solve for t:

I = Prt

t = I/(Pr) = 608/(22800×.08) = 608/1824 = 1/3 . . . . year

For "ordinary interest", a year is considered to be 360 days, so 1/3 year is ...

(1/3)(360 days) = 120 days

It will take 120 days for the loan to earn 608 in interest.

User Keepthepeach
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