Question

Sylvio loaned a friend $1500 at a simple annual interest rate of 5%. How many years did it take Sylvio’s friend to repay him if Sylvio earned $225 in interest?

Answer 1

B

Explanation:

3 yrs

Answer 2

Option B. 3 years.

Explanation:

Sylvio loaned a friend $1,500 at a simple annual interest rate of 5%.

Formula of simple interest = I = P(rt)

I = Interest ($225)

P = Principal amount ( $1,500)

r = 5% = 0.05

t = time ( ? )

Now put the values to find the years.

225 = 1500( 0.05t)

225 = 75t

75t = 225

t =

t = 3

It will take 3 years to repay him if Sylvio earned $225 in interest.