Question

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Answer 1

Using simple interest, it is found that:

12. The loan matured after 6 years.

13. The actual interest rate was of 12%.

Simple Interest

Simple interest is used when there is a single compounding per time period.

The amount of interest after t years in is modeled by:

$I(t) = Prt$

In which:

• P is the initial amount.

• r is the interest rate, as a decimal.

Question 12:

The parameters are: P = 2000, r = 0.06, I = 720, hence:

$I(t) = Prt$

$720 = 2000(0.06)t$

$t = \frac{720}{2000 \times 0.06}$

$t = 6$

The loan matured after 6 years.

Question 13:

The parameters are: t = 5, P = 4000, r = 0.11.

Hence:

I = 4000 x 0.11 x 5 = 2200.

$200 more was charged in interest, hence I(5) = 2400, and:

$I(t) = Prt$

$2400 = 4000(5)r$

$r = \frac{2400}{20000}$

$r = 0.12$

The actual interest rate was of 12%.

More can be learned about simple interest at https://brainly.com/question/25296782