a man needed money for college. he borrowed $5,000 at 14% simple interest per year. if he paid $175…

a man needed money for college. he borrowed $5,000 at 14% simple interest per year. if he paid $175 interest, what was the duration of the loan? (round to two decimal places as needed.) the duration of the loan is year.

a man needed money for college. he borrowed $5,000 at 14% simple interest per year. if he paid $175 interest, what was the duration of the loan? (round to two decimal places as needed.) the duration of the loan is year.

Answer

Explanation:

Step1: Recall simple - interest formula

The simple - interest formula is $I = Prt$, where $I$ is the interest, $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. Given $P=$5000$, $r = 14%=0.14$, and $I = $175$.

Step2: Solve for $t$

We can re - arrange the formula $I = Prt$ to solve for $t$. So, $t=\frac{I}{Pr}$. Substitute the given values: $t=\frac{175}{5000\times0.14}$. First, calculate the denominator: $5000\times0.14 = 700$. Then, calculate $t$: $t=\frac{175}{700}=0.25$.

Answer:

$0.25$