A loan of $16,840 is borrowed at 9% simple interest and is repaid with $4,167.90 interest. What is the duration of the loan?

Question

asked Sep 9, 2022 48.4k views

1 Answer

Gkond · Answer 1 · 2022-09-15T16:39:28+0000

9514 1404 393

Answer:

2 3/4 years

Explanation:

The interest is given by the formula ...

I = Prt . . . . . . principal P at annual rate r for t years

Solving for t gives ...

t = I/(Pr)

t = 4167.90/(16840×0.09) = 2.75

The duration of the loan is 2 3/4 years.