Question

A $1,500 loan has an annual interest rate of 4 1/4% on the amount borrowed. How much time has elapsed if the interest is now $127.50?

Answer 1

$$127.50=1,500(0.0425)*x$

$$127.50 = 63.75 *x$

$x = \frac{127.50}{63.75}$

$x = 2$

2 years elapsed.

hope this helps!

Answer 2

Answer:

2 years

Step-by-step explanation:

Given : A $1,500 loan has an annual interest rate of 4 1/4% on the amount borrowed.

To Find : How much time has elapsed if the interest is now $127.50?

Solution :

Formula of simple interest : principal *rate *time

Principal = $1,500

Rate (in decimals )$4\frac{1}{4*100} =\frac{17}{4*100} =0.0425$

Time (in years)

Simple interest = $127.50

Putting values in formula

$127.50 =  1500*0.0425*time

127.50 =  63.75*time

$\frac{127.50}{63.75}$ = time

2 years = time

Thus time will be 2 years