Question

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

Answer 1

One year at 8% interest of $5000 would be $400, so you know that this was less than a year outstanding. $350/$400 = .875 and .875 of a year is 10.5 months, or 45.5 weeks (.875 *12) or (.875 * 52)