Greg took loan for 7500 charged interest at a simple annual rate of 4.7% total interest he paid was $141 how long was the loan for
To find the length of the loan, we can use the formula for simple interest:
Interest = Principal x Rate x Time
In this case, the principal amount is $7500, the rate is 4.7%, and the interest is $141. We need to find the time.
141 = 7500 x 0.047 x Time
Divide both sides of the equation by (7500 x 0.047):
141 / (7500 x 0.047) = Time
Time ≈ 0.4 years
Since time is typically measured in years, the loan was for approximately 0.4 years, or 4.8 months.
To find the duration of the loan, we can use the formula for simple interest:
Simple Interest = Principal amount × interest rate × time
In this case, the principal amount (P) is $7500, the interest rate (R) is 4.7% (or 0.047), and the total interest (I) paid is $141.
Plugging in these values into the formula, we get:
$141 = $7500 × 0.047 × time
To solve for time, we divide both sides of the equation by $7500 × 0.047:
time = $141 / ($7500 × 0.047)
Calculating this value, we find:
time = 0.4 years
Therefore, the duration of the loan was 0.4 years.