Suppose you take out a loan for $9,000, at 12% ordinary interest. If the amount of interest is $762.00, what is the time period?

Question

Mathematics

Blayne

11 October, 07:05

Suppose you take out a loan for $9,000, at 12% ordinary interest. If the amount of interest is $762.00, what is the time period?

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Answers (1)

Know the Answer?

Kyle Branch · Answer 1

For the answer to the question above,

Let's figure out the formula first

FV = PV (1+i/n) ^ (nt)

9762 = 9000 (1+0.12/12) ^ (12x)

9762 = 9000 (1.01) ^12x

9762/9000=1.01^12x

1.08467=1.01^12x

ln1.08467/12 x ln1.01=0.681 years (8.17 months) same as my calculator

So,

0.681x360=

245.16 days is the time period