Respuesta :
Answer: The duration of the loan is approximately 2.5 years.
Step-by-step explanation:
Since we have given that
Principal = $1200
Rate of interest = 6%
Interest = $1020
We need to find the duration of the loan.
As we know the formula for "Simple interest":
[tex]I=\dfrac{P\times R\times T}{100}\\\\180=\dfrac{1200\times 6\times T}{100}\\\\180=12\times 6T\\\\\dfrac{180}{72}=T\\\\T=12.5\ yrs[/tex]
Hence, the duration of the loan is approximately 2.5 years.
