Answer:
5 years
Step-by-step explanation:
The formula for the amount of simple interest (I) at rate r on principal P for t years is ...
I = Prt
Filling in the given numbers and solving for t, we have ...
3150 = 7000·0.09·t
3150/630 = t = 5 . . . . . divide by the coefficient of t
The loan was for 5 years.
Answer: the duration of the loan was 5 years.
Step-by-step explanation:
The formula for determining simple interest is expressed as
I = PRT/100
Where
I represents interest paid on the loan.
P represents the principal or amount taken as loan
R represents interest rate
T represents the duration of the loan in years.
From the information given,
P = 7000
R = 9%
I = 3150
Therefore,
3150 = (7000 × 9× T)/100
3150 = 630T
T = 3150/630
T = 5
