Question 1070074: Please Help!
Compute the specified quantity.
$4,000 loan, taken now, with a simple interest rate of 6% per year, will require a total repayment of $5,440. At what time t will the loan mature?
Thank You
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! Compute the specified quantity. $4,000 loan, taken now, with a simple interest rate of 6% per year, will require a total repayment of $5,440.
At what time t will the loan mature?
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A(t) = P(1+rt)
5440 = 4000(1+0.06t)
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1 + 0.06t = 1.36
0.06t =0.36
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t = 0.36/0.06
t = 6 years
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Cheers,
Stan H.
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