Joanne and Ed Greenwood built a new barn with an attached arena. To finance the loan, they paid $1,261 interest on $52,600 at 5%. What was the time, using exact interest?
2 answers
19.52
Did you mean simple interest?
if so,
PRT = I
52600(.05)T = 1261
T = 1261/(.05(52600)) = .4795 years
or 175 days
check:
52600(.05)(175/365) = 1260.96 or $1261
if so,
PRT = I
52600(.05)T = 1261
T = 1261/(.05(52600)) = .4795 years
or 175 days
check:
52600(.05)(175/365) = 1260.96 or $1261
2 answers