Answer:
90.7yrs.
Step-by-step explanation:
Given parameters:
Amount borrowed = $2450
Interest rate = 3.5%
Amount repaid = $3221.75
Unknown:
Number of years the load was paid = ?
Solution:
The formula of simple interest;
I = PRT
Where I is the interest
P is the principal
R is the rate
T is the time
To find the interest;
Interest = Amount paid back - loan = 3221.75 - 2450 = 771.75
Now;
P = IRT
2450 = 771.75 x [tex]\frac{3.5}{100}[/tex] x T
2450 = [tex]\frac{2701.25T}{100}[/tex]
T = [tex]\frac{245000}{2701.125}[/tex] = 90.7yrs
The number of years of the loan period was 90.7yrs.
