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A $5000 loan was to be repaid with 8% simple annual interest. A total of $5350 was paid. How long was the loan outstanding?

Sagot :

by using the formula F=Pe^rt
where: F = future worth = 5350
           P= principal worth = 5000
           r = interest = 8%
           t = period = required

5350 = (5000)e^(0.08)t
t = 0.8457 x 12months = 10.15 months

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