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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?​

1 Answer

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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.

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