document.write( "Question 590789: A $4000 loan, taken now, with a simple interest rate of 8%, per year, will require a total repayment of $4640. When will the loan mature? \n" ); document.write( "

Algebra.Com's Answer #375268 by Theo(13342) $\"\"$ $\"About$

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interest rate is 8% per year = .08 per year
\n" ); document.write( "total repayment is 4640 on a loan of 4000.
\n" ); document.write( "total interest to be paid is 640.
\n" ); document.write( "total interest each year is calculated at .08 * 4000 = 320 per year.
\n" ); document.write( "640 / 320 = 2 years when the total amount on the loan equals 4640 which is when the loan matures.
\n" ); document.write( "paying the loan before 2 years is up requires less interest to be paid.
\n" ); document.write( "paying the loan after 2 years is up requires more interest to be paid.
\n" ); document.write( "total due is 4640 in exactly 2 yeara.
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