Question 711623

given:

she pays back {{{2(1/2)=2.5}}} percent which is {{{2.5/100=0.025}}} of the amount of ${{{240}}} quarterly (every three months) and has already paid ${{{42}}}, then we have

{{{240*0.025*t=42}}}...{{{t}}} is number of quarters 

{{{6*t=42}}} 

{{{t=42/6}}}

{{{t=7}}}.....she has been paying back her loan for {{{7}}} quarters which is {{{7*3=21}}} months

so, answer is d) {{{21}}}



or, you can do it this way:


if {{{2.5/100=0.025}}} quarterly, she pays {{{0.025/3=0.00833}}} interest monthly

then {{{240*0.00833*t[m]=42}}}.....{{{t[m]}}} is number of months

{{{2*t[m]=42}}}

{{{t[m]=42/2}}}

{{{t[m]=21}}}