Question

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

Answer 1

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.