Question

Suppose you take out a loan for $9,000, at 12% ordinary interest. If the amount of interest is $762.00, what is the time period? (Round any fraction to the next higher day) a. 254 days b. 246 days c. 258 days d. 250 days

Answer 1

Answer:

answer is option c

Step-by-step explanation:

Amount = $9,000

interest rate (r) = 12%

interest = $762.00

time = ?

we know,

$I = \dfrac{PRT}{100}$

$762 = \dfrac {9000\times 12\times T}{100}$

t = 0.7056 years

t = 0.7056 × 365 days

t = 257.54 days  ≅ 258 days

correct answer is option c.

Answer 2

Answer:

Option b - 246 days.

Step-by-step explanation:

Given : Suppose you take out a loan for $9,000, at 12% ordinary interest. If the amount of interest is $762.00.

To find : What is the time period?

Solution :

We are going to apply interest formula which is given as,

$A=P(1+r)^t$

Where, I is the amount of interest I=$762

P is the principal value P=$9000

r is the interest rate r=12%=0.12

t is the time period

Amount is A=P+I=9000+762=$9762

Substitute the value in the formula,

$9762=9000(1+0.12)^t$  

$\frac{9762}{9000}=(1.12)^t$

$1.0846=(1.12)^t$  

Taking log both side,

$\log(1.08)=t\log(1.12)$    

$t=\frac{\log(1.08)}{\log(1.12)}$

$t=0.679$

Converting time from year into days,

$t=0.679\times 365\approx246$

Therefore, Option b is correct.