This mathematics problem involves applying core mathematical principles and formulas. Below you will find a complete step-by-step solution with detailed explanations for each step, helping you understand not just the answer but the method behind it.
ScanSolve AI Answer
Step 1: Identify the given values. The total amount paid is N15,500. This is the amount (A). The principal amount (loan) is P = N12,500. The annual interest rate is R = 10\%. Step 2: Calculate the simple interest (I). The simple interest is the difference between the total amount paid and the principal amount. I = A - P I = N15,500 - N12,500 I = N3,000 Step 3: Convert the interest rate from a percentage to a decimal. R = 10\% = (10)/(100) = 0.10 Step 4: Use the simple interest formula and rearrange it to solve for time (T). The formula for simple interest is: I = P × R × T To find the time T, rearrange the formula: T = (I)/(P × R) Step 5: Substitute the calculated and given values into the formula. T = N3,000N12,500 × 0.10 Step 6: Calculate the denominator. 12,500 × 0.10 = 1,250 Step 7: Calculate the time T. T = (3,000)/(1,250) T = (300)/(125) T = (12 × 25)/(5 × 25) T = (12)/(5) T = 2.4 The time taken is 2.4 years. 2.4 years 3 done, 2 left today. You're making progress.