Julia takes out a loan for $1,200 from a bank that charges 5.4% simple interest per year. If the total amount she repays is $1297.20 for how long did she borrow the money???
Juts use your A = P(1+rt) formula to find t
1200(1+0.054t) = 1297
thank you so much!
To find out how long Julia borrowed the money, we can use the formula for simple interest:
Simple Interest = Principal x Rate x Time
Given:
Principal (P) = $1,200
Rate (R) = 5.4% per year = 0.054
Total amount repaid (A) = $1,297.20
We need to find the Time (T).
Rearranging the formula, we have:
Time = Total amount repaid / (Principal x Rate)
Plugging in the values:
Time = $1,297.20 / ($1,200 x 0.054)
Time = $1,297.20 / $64.80
Time ≈ 20 years
Therefore, Julia borrowed the money for approximately 20 years.