Joy Kirby made a $320 loan to Robinson Landscaping at 11%. Robinson paid back the loan with interest of $7.04.
How long in days was the loan outstanding (assume 360 days)? (Round your answer to the nearest whole number.)
Period= 72
Explanation:
T = $7.04 = 0.20 × 360 = 72 days
$320 × 0.11
Check:
$320 × .11 × 72 = $7.04
360
To find out how long the loan was outstanding, we can use the formula:
Time (in days) = Interest / (Principal * Rate) * 360
Given that Joy Kirby made a $320 loan at an interest rate of 11%, and Robinson paid back $7.04 in interest, we can substitute these values into the formula:
Time (in days) = $7.04 / ($320 * 0.11) * 360
Simplifying the equation gives us:
Time (in days) = $7.04 / $35.20 * 360
Time (in days) = 0.20 * 360
Time (in days) = 72
Therefore, the loan was outstanding for 72 days.