Question

Joanne and Ed Greenwood built a new barn with an attached arena. To finance the loan, they paid $1,341 interest on $51,700 at 4%. What was the time using exact interest?

Answer 1

Answer:237 days

Explanation:

Interest=
`\$`1341

Principal
`\left ( P\right )=\$ 51,700`

rate of interest
`\left ( t\right )=4%=0.04`

We know

Simple Interest=
`(P* r* t)/(365)`

`time\left ( t\right )`=
`(I* 365)/(P* r)`

`time\left ( t\right )`=
`(1341* 365)/(51700* 0.04)`

`time\left ( t\right )`=
`236.68 days\approx 237 days`