Bobby borrowed $500 at 12 percent simple annual interest. He paid back $680 to pay off the loan. How many years did it take Bobby to pay back the loan?

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Mathematics

19 April, 17:08

Bobby borrowed $500 at 12 percent simple annual interest. He paid back $680 to pay off the loan. How many years did it take Bobby to pay back the loan?

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Jaycee Higgins · Answer 1

Amount = $680

Principal = $500

Interest = 680 - 500 = 180

Rate = 12% Simple annual interest.

I = PRT

180 = 500*12% * Time

180 = 500 * 0.12 * T

180 / (500*0.12) = T

3 = T

T = 3 years.

It took Bobby 3 years to pay back the loan.