Question
B. To find the loan period
, solve
for
.
(3)
The loan period was
years.
(3)
Ask by Burgess Estrada. in the United States
Jan 26,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The loan period is approximately 16.67 years.
Solution
Solve the equation
.
Solve the equation by following steps:
Solve the equation by following steps:
- step0: Solve for
:
- step1: Swap the sides:
- step2: Divide both sides:
- step3: Divide the numbers:
The equationcan be solved for as follows:
Substitute the given values into the equation:
Therefore, the loan period is approximately 16.67 years.
Answered by UpStudy AI and reviewed by a Professional Tutor
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The Deep Dive
To solve for
in the equation
, you need to rearrange the formula to isolate
. This means you divide both sides by
:
In this scenario, if you plug in the numbers with
,
, and
(assuming 6% as the interest rate), you can calculate
and find that the loan period is
year.
In real-world scenarios, understanding the loan period is crucial in making informed financial decisions. Shorter loan periods often mean higher monthly payments but less interest paid overall, while longer periods can ease monthly expenses but result in more interest paid over time. So be strategic when choosing your loan term!