Multiple choice

Gabriel took a home loan of \$75,000 at simple rate of interest. If he paid \$129,000 after some years to clear the loan which was given at 18% rate of interest, then for how many years had he taken the loan?

  1. 4 years

  2. 5 years

  3. 6 years

  4. 7 years

  5. 8 years
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The interest earned is 129,000 - 75,000 = 54,000. Using the simple interest formula I = P*R*T/100, we have 54,000 = 75,000 * 0.18 * T. Solving for T gives 54,000 / 13,500 = 4 years.

AI explanation

The total interest paid is the final amount minus the principal, which is 129000 minus 75000, giving 54000. Using the simple interest formula, 54000 equals 75000 times 0.18 times the number of years. This simplifies to 54000 equals 13500 times the number of years, so dividing both sides gives 4 years.

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