Question

A company borrowed 25,000 at 35% and was charged at $2,625 in intrest . How long was it before the company repaid the money ?

Answer 1

Answer: 3.6 months.

Explanation:

Given, A company borrowed 25,000 at 35% and was charged at $2,625 in interest.

Assume it as simple interest.

Formula : Interest = principal x rate x time. [Rate should be in decimal]

Substitute Principal = $25,000, Rate = 35% = 0.35 and Interest = $2,625 in the formula , we will get

`2625=25000*0.35*\text{time}\\\\\Rightarrow\ \text{time}=(2625)/(25000*0.35)=0.3`

So, time = 0.3 years = 0.3 x 12 months = 3.6 months.