Mr. Joseph borrowed $18900 at 13.5% per annum and repaid $12 757.50 simple interest.Calculate the period of the loan
Question
Mr. Joseph borrowed 12,757.50 simple interest. Calculate the period of the loan.
Solution
To calculate the period of the loan, we need to use the formula for simple interest which is:
I = PRT
where: I = Interest P = Principal amount (the initial amount of money) R = Rate of interest T = Time period
In this case, we know that: I = 18,900 R = 13.5% = 0.135 (in decimal form)
We need to find T. So, we rearrange the formula to solve for T:
T = I / (P * R)
Substituting the given values into the formula:
T = 18,900 * 0.135)
Now, calculate the above expression to find the value of T. This will give you the period of the loan in years.
Similar Questions
Gary borrowed $1200 from a bank. He had to repay $2.20 as simple interest after 2 months. Determine the interest rate per annum.
Andrew borrows $79,500 for 2 years and earns $10,017 of simple interest. Calculate the interest rate?
. Emilio borrows Php 1200 from a bank with 8% simple interest per year. How much will he have to pay back total in 2 years?
Noah invested Php181,370 at 7% interest compounded quarterly for 10 years. How much is the compound interest at the end of the investment period?
Avala borrowed Rs 4800 at a simple interest rate of 12.5% per annum for 2 years. Calculate the total interest paid by Avala?Options1400 1250 13001200
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.