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prohojiy [21]
3 years ago
7

Paula Frye loaned $10,000 to her son's new business at 5% ordinary simple interest (360-day year). At the end of the loan period

, Paula received the $10,000 plus $125 interest. Compute the length of the loan period (to the nearest day)
Mathematics
1 answer:
kakasveta [241]3 years ago
3 0

Answer:

The length of the loan period is 0.25 years , i.e 3 months

Step-by-step explanation:

Given as :

The loan amount = $ 10,000

The rate of interest applied = 5 % at simple interest yearly

The Amount receive = $ 10 ,000 + 125 interest

So, The interest receive for the loan  = $ 125

Let the duration of loan period = T years

<u>From Simple Interest method</u>

Simple Interest = \dfrac{\textrm Principal\times \textrm rate\times \textrm Time}{100}

or, $ 125 = \dfrac{\textrm $ 10,000\times \textrm 5\times \textrm Time}{100}

or. 125 × 100 = 10,000 × 5 × T

or, T = \dfrac{125\times 100}{5\times 10,000}

or, T = \dfrac{12500}{50,000}

∴ T = 0.25

So, the time period of loan = 0.25 years = 3 months

Hence The length of the loan period is 0.25 years , i.e 3 months  Answer

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Step-by-step explanation:

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