Question 1070077
he borrowed 2000.
he agreed to pay a simple interest rate of 5.5% per year.
he paid his father 2302.5 after some time.


with simple interest, the formula is:


f = p * r * n + p


f is the future value
p is the present value
r is the interest rate per time period.
n is the number of time periods.


you have:
f = 2302.5
p = 2000
r = .055 per year
you want to solve for n.


formula becomes:


2302.5 = 2000 * .055 * n + 2000


subtract 2000 from both sides of this equation to get:


302.5 = 2000 * .055 * n


simplify to get:


302.5 = 110 * n


divide both sides of this equation by 110 to get:


302.5/110 = n


solve for n to get:


n = 2.75 years.


it took tom 2.75 years to pay back the loan.


go back to your original equation of:


2302.5 = 2000 * .055 * n + 2000


replace n with 2.75 to get:


2302.5 = 2000 * .055 * 2.75 + 2000


evaluate the equation to get:


2302.5 = 2302.5


solution looks good.


it took tom 2.75 years to pay back the loan.