Oliver Douglas opened a repair shop for computer printers. Most of his loans were longer term, but he got a short term loan of $2,645 for office supplies. This loan was at 8.25% exact simple interest (365-day year). On the due date, Oliver repaid a total of $2,680.87. What was the length of the loan period?

Question

Sidney Hickman

Business

13 August, 12:51

Oliver Douglas opened a repair shop for computer printers. Most of his loans were longer term, but he got a short term loan of $2,645 for office supplies. This loan was at 8.25% exact simple interest (365-day year). On the due date, Oliver repaid a total of $2,680.87. What was the length of the loan period?

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Cordell Blackwell · Answer 1

60 days

Explanation:

interest = amount paid - principal = $2,680.87 - $2,645 = $ 35.87

I interest = PRT / 100 where R = rates = 8.25 % and P = $2,645

(I * 100) / (PR) = T

T = ($ 35.87 * 100) / ($2,645 * 8.25) = 0.16438 years * 365 = 59.9999 approx 60 days