Question

Alice borrowed 16700 from the bank at a simple interest rate of 9% to purchase a used car.At the end of the loan,she had paid a total of 24215.How many months was the car loan

Answer 1

Answer:

Step-by-step explanation:

Alice borrowed 16700 from the bank at a simple interest rate of 9% to purchase a used car. It means that the interest is not compounded. Simple interest is usually expressed per annum. The formula for simple is

I = PRT/100

Where

I = interest

P = principal(amount borrowed from the bank)

R = 9% ( rate at which the interest is charged

T = number of years

At the end of the loan,she had paid a total of 24215. This means that the interest + the principal = 24215

Therefore,

The interest = 24215 - 16700 = 7515

Therefore

7517 = (16700 × 9 × t)/100

751700 = 150300t

T = 751700/150300

T = 5 years

Converting 5 years to months,

1 year 12 months

5 months = 12 × 5 = 60 months