Question

Kurt Busch won the daytona 500 in February 2017 if he paid back a $6,800 loan with $20 interest at 7.5% what was the time of the loan?

Answer 1

t = 14.31 days

Explanations:

The formula for calculating the interest is given as:

`I=PRT`

where:

P is the principal

R is the rate

T is the time

Given the following parameters

P = $6800

I = $20

rate = 7.5% = 0.075

Substitute the given parameters into the formula

`\begin{gathered} 20=6800(0.075)t \\ 20=510t \\ t=(20)/(510) \\ t=0.04years \end{gathered}`

Convert to days

Since there are 365days in a year, hence;

`\begin{gathered} t=0.04*365 \\ t=14.31days \end{gathered}`

Hence the time of the loan is about 14.31 days