A $4,500 loan, taken now, with a simple interest rate of 6% per year, will require a total repayment of $5,040. At what time t will the loan mature?
P = Po + Po*r*t = $5,040.
4500 + 4500*0.06*t = 5040. t = ?.
To determine the time at which the loan will mature, we need to use the formula for simple interest:
Interest = Principal * Rate * Time
In this case, we know the principal (loan amount) is $4,500, the rate is 6% per year, and the total repayment amount is $5,040. Let's denote the time as "t".
Based on the formula, we can set up the equation:
Interest = Total repayment - Principal
$4,500 * 0.06 * t = $5,040 - $4,500
Multiplying the principal and rate by the time gives us:
270t = $540
Dividing both sides of the equation by 270, we find:
t = $540 / 270
t = 2
Therefore, the loan will mature in 2 years.