Question

Lamar took out a loan for $2500 and was charged simple interest at an annual rate of 9.3%. The total interest he paid on the loan was $186 . How long was the loan for, in days? Assume that there are 365 days in a year, and do not round any intermediate computations.

Answer 1

292 days

Solution:

Step 1: Given data:

Principal = $2500

Annual rate = 9.3%

Simple interest paid = $186

Step 2: To find the number of year for the loan paid.

Simple interest =
`(Principal* rate* year)/(100)`

`186=(2500*9.3* years)/(100)`

Do cross multiplication.

⇒ 186 × 100 = 2500 × 9.3 × years

⇒
`(186*100)/(2500*9.3)=years`

⇒
`years=(4)/(5)`

Step 3: To find how long the loan was paid in days:

1 year = 365 days

Multiply years by 365

⇒
`days=(4)/(5)*365`

⇒ days = 292

Hence, the loan was paid in 292 days.