Alice borrowed 16700 from the bank at a simple interest rate of 9% to purchase a used car.At the end of the loan,she had paid a total of 24215.How many months was the car loan
Accepted Solution
A:
Answer:Step-by-step explanation:Alice borrowed 16700 from the bank at a simple interest rate of 9% to purchase a used car. It means that the interest is not compounded. Simple interest is usually expressed per annum. The formula for simple isI = PRT/100WhereI = interestP = principal(amount borrowed from the bank)R = 9% ( rate at which the interest is chargedT = number of yearsAt the end of the loan,she had paid a total of 24215. This means that the interest + the principal = 24215Therefore,The interest = 24215 - 16700 = 7515Therefore 7517 = (16700 × 9 × t)/100751700 = 150300tT = 751700/150300T = 5 yearsConverting 5 years to months, 1 year 12 months5 months = 12 × 5 = 60 months