Question

Hector needs to borrow $20000 to pay a contractor for a home addition. The bank is offering him a 4.8% simple interest loan and is charging $4800 in interest during the life of the loan. How long is the life of the loan?

Answer 1

@yoyosing123 Do you know the Simple Interest formula?

Answer 2

no

Answer 3

Your job is to find the formula, then I'll guide you to apply it :)

Answer 4

I=PRT

Answer 5

Great, memorize it!
I = P R T
I = $4800 (in interest), P = $20000, R = 4.8%

Answer 6

Do you know how to find T now?

Answer 7

yes ty

Answer 8

What do you get for T?

Answer 9

did you get 2 years?

Answer 10

Still doesnt make sense!!