Question #297729

Puleng receives R1500,00 from a bank now, that charges 10.5% simple discount per annum. She has to pay back an amount of R1893.75 in a few months time. The number of months after which Puleng pays back the loan, rounded to one decimal place is

(1) 2.5

(2) 23.8

(3) 2.0

(4) 30.0


1
Expert's answer
2022-02-15T11:05:24-0500

Solution:

P=R 1500r=10.5%=0.105A=R 1893.75P=R\ 1500 \\r=10.5\%=0.105 \\A=R\ 1893.75

No. of months = t = ?

A=P+Prt121893.75=1500+1500×0.105×t12393.75=1500×0.105×t12t=30A=P+\dfrac{Prt}{12} \\\Rightarrow 1893.75=1500+\dfrac{1500\times0.105\times t}{12} \\\Rightarrow 393.75=\dfrac{1500\times0.105\times t}{12} \\ \Rightarrow t=30

So, option 4 is correct.


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