Stephanie took advantage of the interest-only financing from Rooms-To-Go and borrowed $2,000 with a 15 percent annual interest r
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Answer:
Using the formula:
where
A is the total amount
P is the principal
I is the Simple Interest
As per the statement:
Principal(P) = 5300 rupees.
rate of interest(r) = 6.5% = 0.065
Total amount(A) = 6678 rupees.
Then using above formula we have;
Subtract 5300 both sides we get;
or
We have to find the time period.
Using formula of Simple interest:
where r is the rate of interest (in decimal)
here, r = 6.5% = 0.065
Substitute the given values top find t:
⇒
Divide both sides by 344.5 we have;
Therefore, the time period t in years is 4 years