SOLUTION: Find the length of the loan in months, if $600 is borrowed with an annual simple interest rate of 9% and with $681 repaid at the end of the loan.
Length of the loan = __________ m
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-> SOLUTION: Find the length of the loan in months, if $600 is borrowed with an annual simple interest rate of 9% and with $681 repaid at the end of the loan.
Length of the loan = __________ m
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Question 1198836: Find the length of the loan in months, if $600 is borrowed with an annual simple interest rate of 9% and with $681 repaid at the end of the loan.
Length of the loan = __________ months Answer by Theo(13342) (Show Source):
You can put this solution on YOUR website! the simple interest formula is i = p * r * t
i is the interest
p is the principal
r is the interest rate per time period
t is the number of time periods
sine you have to repay 681 at the end of the loan, the interest is 681 minus 609 = 81.
the formula becomes 81 = 600 * .09 * t
t is in years.
simplify to get 81 = 54 * t
solve for t to get t = 81/54 = 1.5 years
multiply by 12 to get 18 months.
you could also have converted the annual interest rate to monthly interest rate and solved as follows.
.09 / 12 = .0075.
i = p * r * t becomes 81 = 600 * .0075 * t
simplify to get:
81 = 4.5 * t
solve for t to get t = 81 / 4.5 = 18 months
