A company borrowed $25,000 at 3.5% and was charged $2,625 in interest. How long was it before the company repaid the money?

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Mathematics

Krish Scott

2 May, 21:24

A company borrowed $25,000 at 3.5% and was charged $2,625 in interest. How long was it before the company repaid the money?

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Stafford · Answer 1

Hello

3 years. Since no mention of compounding was made I will assume that it's 3.5% simple interest. So first, let's calculate what percent of the entire loan was interest. Just a simply matter of division. 2625 / 25000 = 0.105 = 10.5% Now lets' divide the percentage of the loan that was paid in interest by the interest rate. 10.5% / 3.5% = 3 So the company took 3 years to repay the loan.

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