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notsponge [240]
3 years ago
15

Dream borrowed $500 at an interest rate of 8%. At the end of the loan period, she had to pay back $530. How long was the loan fo

r
Mathematics
1 answer:
Aliun [14]3 years ago
5 0

Answer:

The loan was for 9 months only

Step-by-step explanation:

In this question, we are concerned with calculating the time taken for a loan om an interest to be paid back

To calculate this, we use the simple interest formula

Mathematically;

I = PRT/100

where P is the principal which is the amount borrowed and that is $500 according to the question

R is the rate which is 8% according to the question

Interest can be calculated by subtracting the principal from the  amount paid back = 530-500 = 30$

We now plug these values into the equation

30 = (500 × 8× T)/100

100 × 30 = 4000T

T = 3000/4000

T = 0.75 (same as 0.75 × 12 months = 9 months)

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