Question

Gregoria borrowed $2,450, to be paid back at 3.5% simple interest. She spent $3221.75 in all to repay the loan. How many years did Georgia take to repay the loan?

Answer 1

Answer: 9 years

Explanation:

Simple interest = PRT/100

where

P = principal = $2450

R = rate = 3.5%

T = time = unknown

Interest = $3221.75 - $2450 = $771.75

Simple interest = PRT/100

$771.5 = ($2450 × 3.5 × T)/100

$771.5 = $8575T/100

8575T = 771.5 × 100

8575T = 77150

T = 77150/8575

Time = 8.99 years = 9 years