Question

Nate borrowed $62,000 at 9.4% interest per year if he owed a total of $910.90 in when he repaid the loan how many days do they keep the money for

Answer 1

The formula for simple annual interest is:

I = Prt

where,

I = Interest accumulated = $910.90
P = Principal Amount = $62000
r = Interest rate = 9.4% = 0.094
t = time in years

Using the values in above equation, we get:

910.90 = 62000 x 0.094 x t

⇒ t = 910.90/(62000 x 0.094) = 0.156

This is the time in years. Since there are 365 days in a year, the time in days will be:

t = 0.156 x 365 = 57 (rounded to nearest day)

This means, Nate kept the borrowed money for 57 days