Lina took out a loan of 18,500 at an interest rate of 7%. After paying of the loan, she realized she had paid 7,700 in interest.How long was the loan for?
Answer (1)
Answer:To determine the duration of Lina's loan, we need to analyze the interest paid in relation to the principal amount and the interest rate. The principal loan amount was $18,500, and she paid $7,700 in interest at an interest rate of 7%. Using the simple interest formula:Interest = Principal × Rate × Timewhere Interest = $7,700, Principal = $18,500, Rate = 7% (or 0.07), and Time is what we need to find.Rearranging the formula to solve for Time:Time = Interest / (Principal × Rate)Substituting the known values:Time = 7700 / (18500 × 0.07) = 7700 / 1295 = approximately 5.95 years.Therefore, the loan was for approximately 6 years.Step-by-step explanation:
