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Reika [66]
1 year ago
15

Assume that all interest is simple interestBerger Car rental borrow $8500 at 4% interest to cover the increase cost of the auto

insurance find the term of the loan if the interest is $170.

Mathematics
1 answer:
viva [34]1 year ago
5 0

we know that

The formula of simple interest is equal to

I=P(rt)

In this problem

we have

I=$170

P=$8,500

r=4%=4/100=0.04

t=?

substitute given values in the formula

\begin{gathered} 170=8,500(0.04t) \\ Solve\text{ for t} \\ t=\frac{170}{8,500*0.04} \\ t=0.5\text{ years} \end{gathered}

therefore

0.5 years=6 months

<h2>The answer is 6 months</h2>
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