Question

Oliver Douglas opened a repair shop for computer printers. Most of his loans were longer term, but he got a short term loan of $2,645 for office supplies. This loan was at 8.25% exact simple interest (365-day year). On the due date, Oliver repaid a total of $2,680.87. What was the length of the loan period?

Answer 1

Answer:

60 days

Explanation:

interest = amount paid - principal =  $2,680.87 - $2,645 = $ 35.87

I interest = PRT / 100 where R = rates = 8.25 % and P = $2,645

(I × 100 ) / ( PR) = T

T = (  $ 35.87 × 100) / ( $2,645 × 8.25 ) = 0.16438 years × 365 = 59.9999 approx 60 days