SOLUTION: 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 matur

Algebra ->  Finance -> SOLUTION: 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 matur      Log On


   

Question 1069900: 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?


Answer by jorel1380(3719) About Me  (Show Source):
You can put this solution on YOUR website!
Let n be the number of years to maturity. Then:
4000*n*.06=5440-4000=1440
.06(n)=1440/4000
n=1440/(4000*.06)=6 years to maturity. ☺☺☺☺