Question

3. A man needed money for college. He borrowed $6,000 at 14% simple interest per year. If he paid $420 interest, what was the duration of the loan?

Answer 1

Answer: half year

Step-by-step explanation:

The formula to find the simple interest is given by :-

$I=Prt$, , where P is the principal amount , r is the rate of interest and t is the time in year.

Given : I=420 ; r=14%=0.14 and P =$6000

Then, we have the following equation :-

$420=6000\times0.14 \times t\\\\\Rightarrow\ t=\dfrac{420}{6000\times0.14}=0.5$

It means the duration of the loan is half year .