Question

A bank lends a business $250000.The annual rate of interest is 8.4%. When paying back the loan, the business pays an amount of $105 000 in simple interest. Calculate the number of years the business took out the loan for.

Answer 1

`simple \: interest = 5years \\ simple \: interest = (principal * time * rate)/(100 ) \\ 105000 = (250000 * time * 8.4)/(100 ) \\ 105000 = 2500 * time * 8.4 \\ 105000 = 21000time \\ time = 5`