**Problem Statement:**Jessica borrowed $3000 from a lender that charged simple interest at an annual rate of 8%. When Jessica paid off the loan, she paid $960 in interest. How long was the loan for, in years?If necessary, refer to the [list of financial formulas](#).**Input Field:**- [Text Box] Years**Buttons:**- Continue- Submit Assignment© 2022 McGraw Hill LLC. All Rights Reserved. Terms of Use | Privacy Center | Accessibility**Additional Information:**- **Weather Widget:** 50°F, Mostly cloudy- **Time and Date:** 5:55 PM, 11/1/2022

Simple interest is the interest calculated only on the principal amount and ignores the accrued interest. Formula for Simple interest is given below: SI= P×R×T where P is the Principal, R is the interest rate and T is the time.In the question, P= $3000, R=8% p.a and SI= $960 and we have to calculate the number of years. Putting the above values in below equation, we get SI= P×R×T 960= 3000 ×0.08 ×T 960= 240 ×T T= 4 Hence the loan was for 4 years

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Jessica borrowed $3000 from a lender that charged simple interest at an annual rate of 8%. When Jessica paid off the loan, she paid $960 in interest. How long was the loan for, in years? If necessary, refer to the list of financial formulas. 0 years X

Jessica borrowed $3000 from a lender that charged simple interest at an annual rate of 8%. When Jessica paid off the loan, she paid $960 in interest. How long was the loan for, in years? If necessary, refer to the list of financial formulas. 0 years X

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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