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Gregoria borrowed $2,450, to be paid back at 3.5% simple interest. She repays $3221.75. How many years was the loan period?

User Jeb
by
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1 Answer

4 votes

Answer:

90.7yrs.

Explanation:

Given parameters:

Amount borrowed = $2450

Interest rate = 3.5%

Amount repaid = $3221.75

Unknown:

Number of years the load was paid = ?

Solution:

The formula of simple interest;

I = PRT

Where I is the interest

P is the principal

R is the rate

T is the time

To find the interest;

Interest = Amount paid back - loan = 3221.75 - 2450 = 771.75

Now;

P = IRT

2450 = 771.75 x
(3.5)/(100) x T

2450 =
(2701.25T)/(100)

T =
(245000)/(2701.125) = 90.7yrs

The number of years of the loan period was 90.7yrs.

User Berthier Lemieux
by
8.9k points
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