$6900 loan at 12% and eventually repaid $9384 (principal and interest). What was the time period of the loan?
2 answers
th time was 18
I will assume compound interest:
6900(1.12)^n = 9384
(1.12)^n = .1.36
take log of both sides, and use log rules
nlog1.12 = log1.36
n = log1.36/log1.12 = 2.7
it would take 2 years and appr. 8.5 months
check:
balance after 1 year = 6900(1.12) = 7740.32
balance after 2 years = 7740.32(1.12) = 8669.16
balance after 3 years = 8669.16(1.12) = 9709.46
difference between 2 and 3 years = 1040
and .7 of that is appr 728
8669+728=9397 , close enough
6900(1.12)^n = 9384
(1.12)^n = .1.36
take log of both sides, and use log rules
nlog1.12 = log1.36
n = log1.36/log1.12 = 2.7
it would take 2 years and appr. 8.5 months
check:
balance after 1 year = 6900(1.12) = 7740.32
balance after 2 years = 7740.32(1.12) = 8669.16
balance after 3 years = 8669.16(1.12) = 9709.46
difference between 2 and 3 years = 1040
and .7 of that is appr 728
8669+728=9397 , close enough
1 answer