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A $1,500 loan has an annual interest rate of 4 1/4% on the amount borrowed. How much time has elapsed if the interest is now $127.50?

Verified Answer :

Willchemistry

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$\(127.50 = 63.75 *x\)

\(x = \frac{127.50}{63.75}\)

\(x = 2\)

2 years elapsed.

hope this helps!

Answer:

2 years

Step-by-step explanation:

Given : A $1,500 loan has an annual interest rate of 4 1/4% on the amount borrowed.

To Find : How much time has elapsed if the interest is now $127.50?

Solution :

Formula of simple interest : principal rate time

Principal = $1,500

Rate (in decimals )@@MATH_TOKEN_0@@

Time (in years)

Simple interest = $127.50

Putting values in formula

$127.50 =  15000.0425time

127.50 =  63.75*time

\(\frac{127.50}{63.75}\) = time

2 years = time

Thus time will be 2 years


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