Mr. Joseph borrowed $18900 at 13.5% per annum and repaid $12 757.50 simple interest.Calculate the period of the loan
Question
Mr. Joseph borrowed 12 757.50 simple interest.Calculate the period of the loan
Solution
To calculate the period of the loan, we can use the formula for simple interest which is:
I = PRT
where: I = Interest P = Principal amount (the initial amount of money) R = Rate of interest T = Time period
In this case, we know that: I = 18,900 R = 13.5% = 0.135 (in decimal form)
We want to find T, so we rearrange the formula to solve for T:
T = I / (P * R)
Substituting the given values:
T = 18,900 * 0.135)
Now, calculate the value of T.
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