Question

A linear model is used to determine the amount owed on a loan of $5,000 with simple interest of 4.25%. The model is A = 5000 + 5000(0.0425t), where A is the Amount (total principal plus interest) required to
Use the model to determine how long it would take for the loan amount to reach $7,000. Round to the nearest tenth

Answer 1

Answer:

9.4

Step-by-step explanation:

Hey there!

The question is asking us to use the model to find how long it would take for the loan amount to reach 7,000

In order to answer this, we need to make 7,000 equal to the equation:

7000=5000+5000(0.0425t)

Subtract 5000 from both sides

2000=5000(0.0425t)

Now we simplify the RHS

2000 = 212.5t

Now you divide both sides by 212.5 to get t by itself

t=9.41

So it would take 9.4 months for the loan amount to reach 7000