# Transitional Math

Richard took a loan of \$10000 at a rate of 5%. If he paid \$2500 in interest, how long did it take him to pay off the loan?

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1. Assume simple interest.
So for \$10,000, the annual interest is \$10,000*0.05=\$500.
Number of years = \$2500/\$500 = 5 years.

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posted by MathMate

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