SOLUTION: Bobby borrowed $500 at 12 percent simple annual interest. He paid back $680 to pay off the loan. How many years did it take Bobby to pay back the loan?

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Question 1110937: Bobby borrowed $500 at 12 percent simple annual interest. He paid back $680 to pay off the loan. How many years did it take Bobby to pay back the loan?
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
+P+%2B+I+=+680+
+P+=+500+
+I+=+680+-+500+
+I+=+180+
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Use simple interest formula
+I+=+P%2Ar%2At+
+180+=+500%2A.12%2At+
+180+=+60t+
+t+=+3+
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It takes him 3 yrs to pay off the loan