Answer:
The loan was for 8 years.
Explanation:
It is stated that you earned $240 interest on a loan of $600 at an interest rate of 5%.
Find the duration time by using the formula
I = Pit
Here:
- 'P' is the total principal loan
- 'i' is the rate of interest per year
- 't' is the total time in years
substituting I = $240, P = $600 and i = 5%
I = Pit
t = I / Pi
= 240 / (0.05 × 600)
= 240 / 30
t = 8 years
Therefore, the loan was for 8 years.