Question

How long will it take for a home improvement loan for 22,800to earn interest of 608.00at 8 %ordinary interest

Answer 1

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Answer:

  120 days

Step-by-step explanation:

Using the formula for simple interest, we can solve for t:

  I = Prt

  t = I/(Pr) = 608/(22800×.08) = 608/1824 = 1/3 . . . . year

For "ordinary interest", a year is considered to be 360 days, so 1/3 year is ...

  (1/3)(360 days) = 120 days

It will take 120 days for the loan to earn 608 in interest.