We read your photo as:

A loan of N12,500 was repaid with a total payment of N15,500. If the annual interest rate was 10%, how long did it take to repay the loan?

Mathematics

ScanSolve AI Answer

Answer

2.4 years2.4 \text{ years}

Step-by-step solution

7 steps

  1. Identify the given values.

    The total amount paid is N15,500\text{N}15,500. This is the amount (AA).
    The principal amount (loan) is P=N12,500P = \text{N}12,500.
    The annual interest rate is R=10%R = 10\%.

  2. Calculate the simple interest (II).

    The simple interest is the difference between the total amount paid and the principal amount.

    I=A−PI = A - P I=N15,500−N12,500I = \text{N}15,500 - \text{N}12,500 I=N3,000I = \text{N}3,000

  3. Convert the interest rate from a percentage to a decimal.

    R=10%=10100=0.10R = 10\% = \frac{10}{100} = 0.10

  4. Use the simple interest formula and rearrange it to solve for time (TT).

    The formula for simple interest is:

    I=P×R×TI = P \times R \times T

    To find the time TT, rearrange the formula:

    T=IP×RT = \frac{I}{P \times R}

  5. Substitute the calculated and given values into the formula.

    T=N3,000N12,500×0.10T = \frac{\text{N}3,000}{\text{N}12,500 \times 0.10}

  6. Calculate the denominator.

    12,500×0.10=1,25012,500 \times 0.10 = 1,250

  7. Calculate the time TT.

    T=3,0001,250T = \frac{3,000}{1,250} T=300125T = \frac{300}{125} T=12×255×25T = \frac{12 \times 25}{5 \times 25} T=125T = \frac{12}{5} T=2.4T = 2.4

    The time taken is 2.4 years.

    2.4 years2.4 \text{ years}
Was this helpful?

Try one yourself

A new problem that tests the same skill.

Still stuck on this one?

Ask a follow-up, and the answer starts from this question.

Got a different question?Ask your own question

More Mathematics Questions

QCalculate the monthly payment for a loan of N8000 at 7% annual interest over 2 years, paid monthly.QCalculate the annual loan payment and create an amortization schedule for a ₦500,000 loan at 12%…QA trader borrows N600,000 from a moneylender at a rate of 15% per annum simple interest. Calculate…QCalculate the time in years for an investment of N15,000 at a 5% simple annual interest rate to…QCommercial bank gave a loan of TZS 5,000,000 at an annual interest rate of 12%. Calculate the…
See all Mathematics questions →
Got a syllabus? Photograph it and I'll tell you what's due and what's worth the most.
Handwritten step-by-step solution preview

Handwritten Step-by-Step Solution

Get this as a handwritten image on WhatsApp — like a tutor wrote it for you.

Try on WhatsApp