Question

David borrows $15,000 for a new car. He is charged 6% simple interest per year. If he paid $4500 in interest, how many years did it take him to repay the loan?

Answer 1

Answer:

5 years

Step-by-step explanation:

Given that:

Amount borrowed = principal = p = $15000

Interest % per year = r = 6% = 0?06

Total Interest paid = $4500

Number of years it took to repay the loan (t) =?

Simple interest = (p * r * t)

4500 = (15000 * 0.06 * t)

4500 = 900t

4500 / 900 = t

5 = t

It tool 5 years to repay the loan