Question

When did he receive the loan? aid she rерау If she was charged IL George repaid a $14,500 loan with $655.48 in simple interest on April 28, 2019. If the simple interest rate was 8.25% p.a., Lydia borrowed $7400 at 7.35% p.a. simple interest. How many mo an interest of $317.25?

Answer 1

The formula to calculate simple interest is Principal*Rate of interest*No of months/100
1) Loan amount (given)	7400
Rate of interest (per annum) given	7.35%
Rate of interest (per month) = Rate of interest (per annum)/12 months	0.61%
Interest charged (given)	317.25
Rearranging the above formula
No of months =	Simple interest * 100 / Principal * Rate of interest per month
	(317.25*100)/(7400*0.613)
No of months =	7
As calculated above, it took Lydia 7 months to repay the loan
2) Loan amount (given)	14500
Rate of interest (per annum) given	8.25%
Rate of interest (per month) = Rate of interest (per annum)/12 months	0.6875%
Interest charged (given)	655.48
Rearranging the above formula
No of months =	Simple interest * 100 / Principal * Rate of interest per month
	(655.48*100)/(14500*0.6875)
No of months =	6.5753
No of days = No of months as above *365 days/12 months	200
As calculated above loan was taken 200 days before it was repaid on 28th April 2019.
Date of repayment of loan	28-Apr-19
200 days before	10-Oct-18
George took the loan on 10th Oct 2018 as calculated above.