Question

Your brother lends you $125 at an annual interest rate of 25%. If you want to pay no more than $62.50 in simple interest, in how many years will you need to pay off the loan? Use the formula: I = Prt.

Answer 1

Lets write an equation describing the interest rate y:
y = 125(25%)x
where x is the number of years, lets simplify that equation
y = (125)(25/100)x
y = 31.25x
now lets substitute the maximum amount that we want to pay and solve for x, the number of years:
62.50 = 31.25x
x = 62.50/31.25
x = 2
therefore, the loan needs to be paid in 2 years in order to pay $62.50 of interest

Answer 2

Answer:

2 years

Step-by-step explanation:

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