Answer:the term of the loan is approximately 4 months
Step-by-step explanation:
The term of the loan means the period for which the loan was given.
We would apply the formula for simple interest which is expressed as
I = PRT/100
Where
P represents the principal
R represents interest rate
T represents time in years
I = interest after t years
From the information given
P = 17500
R = 6.5%
I = total amount paid - principal
I = 17,873.97 - 17,500.00 = 373.97
Therefore
373.97 = (17500 × 6.5 × T)/100
373.97 = 1137.5T
T = 373.97/1137.5
T = 0.32 years
Converting to months, it becomes
0.32 × 12 = 3.84
Approximately 4 months.
