A company borrowed $25,000 at 3.5% and was charged $2,625 in interest. How long was it before the company repaid the money?

3 years. Since no mention of compounding was made I will assume that it's 3.5% simple interest. So first, let's calculate what percent of the entire loan was interest. Just a simply matter of division. 2625 / 25000 = 0.105 = 10.5% Now lets' divide the percentage of the loan that was paid in interest by the interest rate. 10.5% / 3.5% = 3 So the company took 3 years to repay the loan.

Answer Link

InesWalston InesWalston · Answer 2 · 2018-11-21T08:29:39+01:00

Answer-

The company repaid the money in 3 years.

Solution-

A company borrowed $25,000 at 3.5% and was charged $2,625 in interest.

Considering the interest as simple interest,

[tex]\text{interset}=\dfrac{\text{Principal}\cdot \text{Rate of interest}\cdot \text{Time period}}{100}[/tex]

Here,

Interest = $2625

Principal = $25000

Rate of interest = 3.5% annually

Putting the values,

[tex]\Rightarrow 2625=\dfrac{25000\times 3.5\times t}{100}[/tex]

[tex]\Rightarrow t=\dfrac{2625\times 100}{25000\times 3.5}[/tex]

[tex]\Rightarrow t=3\ years[/tex]

Therefore, the company repaid the money in 3 years.