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On an 8% straight term loan of $6,071 the borrower paid total interest of $1,700. What is the term of the loan?

User Dejal
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1 Answer

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Answer:

42 months

Step-by-step explanation:

On an 8% straight term loan of $6,071

The borrower paid a total interest of $1,700 on the loan

Therefore, the term of the loan can be calculated as follows

=$6,071×8/100

= $6,071×0.08

= 485.68

Since there are 12 months in a year

= 485.68/12

= 40.47

$1,700/40.47

= 42

Hence the term of the loan is 42 months

User Zaw Than Oo
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