Question

My total owed with interest is $507.50. I borrowed $290 at 12.5% interest.How long was my loan for in years?

Answer 1

Answer:

Time = 6 years

Step-by-step explanation:

Data;

Simple interest = $507.50

Principal = $290

Rate = 12.5% = 12.5/100 = 0.125

Time = ?

To solve this question, we'll need to use the formula for simple interest

S.I = PRT / 100

Or

S.I = P(1 + RT)

S.I = simple interest

P = principal

R = rate

T = time

S.I = P(1 + RT)

507.50 = 290(1 + 0.125*T)

507.50 = (290 × 1) + (290 * 0.125T)

507.50 = 290 + 36.25T

Solve for T

36.25T = 507.50 - 290

36.25T = 217.50

T = 217.50 / 36.25

T = 6

The time tenure on the loan was 6 years