Jared obtained a simple interest loan for 1200 at a credit union at an annual interest rate o f 5.5%. if Jared paid $1430 to repay the loan, for how many months, was the money borrowed ?
( can you please tell me the steps. thanks )
I = PRT
T = I/(PR)
I = 230
T = 230/(1200(.055)) = 3.48 years or 41.8 months
appr. 42 months
To find the number of months for which the money was borrowed, we can use the formula for simple interest:
Simple Interest = Principal * Rate * Time
Where:
Principal = amount borrowed = $1200
Rate = annual interest rate = 5.5% = 0.055 (in decimal form)
Time = the number of months
Step 1: Calculate the interest earned on the loan:
Interest = Principal * Rate * Time
Since the loan was repaid for a total of $1430, the interest earned will be the difference between the amount repaid and the principal borrowed:
Interest = $1430 - $1200 = $230
Step 2: Plug in the known values to find the time (number of months):
$230 = $1200 * 0.055 * Time
Step 3: Solve for Time:
Divide both sides of the equation by ($1200 * 0.055):
Time = $230 / ($1200 * 0.055)
Calculating this expression will give us the number of months for which the money was borrowed.