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Posted by on Sunday, February 17, 2013 at 4:24pm.

Kathy borrowed $800 at 6% interest. The amount of interest paid was $144. What was the length of the loan?

  • Finite Math - , Sunday, February 17, 2013 at 5:43pm

    let the time be n years, assuming that compound interest is used.

    800(1.06)^n = 944
    1.06^n = 1.18
    take log of both sides, and use log rules

    n log 1.06 = log 1.18
    n = log1.18/log1.06 = appr 2.84 years

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