Question

Kim got a loan for $4700 to buy a used car. The interest rate was 7.5%. She paid $1057.50 in interest. How many years did it take to pay off her loan?

Answer 1

It would take Kim 3 years to pay off the loan amount.

Step-by-step explanation:

• The principal amount is $4700, and the interest rate is 7.5%.

Step 1:

Multiplying the principal amount with the interest rate.

∴ $4700\times7.5%$

$=352.5$

Step 2:

Dividing the amount paid in interest (1057.5) by 352.5.

∴ $1057.5/352.5$

$=3$

Hence, the required answer is 3 years.