Question

RATIOS, PROPORTIONS, AND PERCENTSFinding the principal, rate, or time for a simple interest loan...Ann took out a loan for $17,000 and was charged simple interest at an annual rate of 6.8%.The total interest she paid on the loan was $867.How long was the loan for, in months?Do not round any intermediate computations. If necessary, refer to the list of financial formulas.monthsI need help with this mathProblem

Answer 1

The time formula for simple interest is:

$t=\frac{I}{Ci}$

Where I is the interest, C is the capital and i is the rate

In this case, we have:

I= 867

i=6.8%

C=17000

Replace and solve:

$t=\frac{867}{17000*0.068}$$t=0.75\text{ years}$

The time is 0.75 years because the rate is in years.

Convert years to months:

$0.75years*\frac{12months}{1years}=9\text{ months}$