Answer:
2 years
Step-by-step explanation:
Given : A $1,500 loan has an annual interest rate of 4 1/4% on the amount borrowed.
To Find : How much time has elapsed if the interest is now $127.50?
Solution :
Formula of simple interest : principal *rate *time
Principal = $1,500
Rate (in decimals )[tex]4\frac{1}{4*100} =\frac{17}{4*100} =0.0425[/tex]
Time (in years)
Simple interest = $127.50
Putting values in formula
$127.50 = 1500*0.0425*time
127.50 = 63.75*time
[tex]\frac{127.50}{63.75}[/tex] = time
2 years = time
Thus time will be 2 years
