Question

Question 4 (multiple choice)
How many days would it take a $7,300 home-remodeling loan to earn $2,000 exact interest at 8% interest rate?

A. 1,250
B. 1,000
C. 1,080
D. 350

Answer 1

Exact interest means that there are 365 days in a year
Now use the formula of simple interest
I=p×r×(t/365)
I interest earned 2000
P amount of the loan 7300
R interest rate 0.08
T time t days
Solve the formula for t to get
T=[I÷(pr)]×365
T=(2,000÷(7,300×0.08))×365
T=1,250 days

Hope it helps!