Suppose you take out a loan for $9,000, at 12% ordinary interest. if the amount of interest is $762.00, what is the time period? (round any fraction to the next higher day) a. 254 days b. 246 days c. 258 days d. 250 days

answer is option c

Step-by-step explanation:

Amount = $9,000

interest rate (r) = 12%

interest = $762.00

time = ?

we know,

t = 0.7056 years

t = 0.7056 × 365 days

t = 257.54 days  ≅ 258 days

correct answer is option c.

Option b - 246 days.

Step-by-step explanation:

Given : Suppose you take out a loan for $9,000, at 12% ordinary interest. If the amount of interest is $762.00.

To find : What is the time period?

Solution :

We are going to apply interest formula which is given as,

Where, I is the amount of interest I=$762

P is the principal value P=$9000

r is the interest rate r=12%=0.12

t is the time period

Amount is A=P+I=9000+762=$9762

Substitute the value in the formula,

Taking log both side,

Converting time from year into days,

Therefore, Option b is correct.