Question

Lilly just paid off a 400$ loan. she had to pay 60 in interest at a simple annual interest rate of 5%. how many years did lily have this loan?

•A.) 2

•B.) 3

•C.) 4.5

•D.) 5

Answer 1

B.) 3

Explanation:

Interest = prinipical ^ interest rate ^ year

60 = 400 ^ 5% ^ year

year = 60/400^5%

3years