Jennifer borrowed $ 7111 at a 7.00% interest rate. I paid $ 2,063 small interest for...

Jennifer borrowed $ 7111 at a 7.00% interest rate. I paid $ 2,063 small interest for this loan. How long (period) is her loan?

Solutions

Expert Solution

Here, it is not provided whether the interest method is simple or compound

Case 1: Compound Interest

Time period of loan=log((7111+2063)/7111)/log(1+7%)
=3.764936501 years

Case 2: Simple Interest
Time period of loan=((7111+2063)/7111-1)/7%=4.1444844 years

jeff jeffy answered 2 years ago

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