Question

James paid off the loan on his motorboat in the year 2006. He originally borrowed $6500 to buy the boat, but with simple annual interest, he discovered that he paid a total of $8775 over the life of the loan. If James’s annual interest rate was 7%, in what year did his loan begin?

Answer 1

2001

Explanation:

8775/6500=1.35

you find a time table for 35

every year is 7% so that means 5 year is 35%