Question

Find the term of a loan of $225 at 3.5% if the simple interest is $63.

Answer 1

Answer: 8

Step-by-step explanation:

The formula to calculate the simple interest is given by :-

$S.I. =Prt$, where P is the principal amount , r is rate of interest and t is time.

Given: The principal amount : P = $225

The rate of interest : r = 3.5% =0.035

Simple Interest : SI = $63

Put these value in the above formula , we get

$63=225\times0.035t\\\\\Rightarrow\ t=\dfrac{63}{225\times0.035}\\\\\Rightarrow\ t=8$

Hence, the term of loan = 8