Ms. Pecho currently owes $637.50 in simple interest on a loan of $2500 at an annual interest rate of 17%. How long has she had the loan?

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Answer 1 · 2017-12-21T05:19:44

$1 1/2$ years which is $1$ year and $6$ months.

The formula for simple interest is

$SI = (PRT)/100$

You can either substitute the given values first and the solve for $T$ , or you can transpose the formula to have $T$ as the subject.

$T = (100xxSI)/(PR)$

$T= (100 xx 637.50)/(2500xx17)$

$T=1.5$

As time is always in years, this means it was for $1 1/2$ years which is $1$ year and $6$ months

Answer 2 · 2017-12-21T07:56:21

$=1.5years$

Given that this is a simple interest loan, the problem can be solved using the formula.
$I="Pin"$
$where:$
$I="Interest"$
$P="Principal"$
$n="number of years"$
Rearrange the formula and isolate $n$ as required and plug in data as given.
$I="Pin"$
$n=I/"Pi"$
$n=($637.50)/(($2500)(0.17))$
$n=1.5yr=1 (1)/(2) years$