Answer:
Time = 6 years
Explanation:
Data;
Simple interest = $507.50
Principal = $290
Rate = 12.5% = 12.5/100 = 0.125
Time = ?
To solve this question, we'll need to use the formula for simple interest
S.I = PRT / 100
Or
S.I = P(1 + RT)
S.I = simple interest
P = principal
R = rate
T = time
S.I = P(1 + RT)
507.50 = 290(1 + 0.125*T)
507.50 = (290 × 1) + (290 * 0.125T)
507.50 = 290 + 36.25T
Solve for T
36.25T = 507.50 - 290
36.25T = 217.50
T = 217.50 / 36.25
T = 6
The time tenure on the loan was 6 years