Question

# A person borrows rm 1000 from a bank at an interest rate of 10%. After some time, he pays the bank rm 1900 as full and final settlement of the loan. Estimate the duration of his loan.

275

likes
1375 views

## Answer to a math question A person borrows rm 1000 from a bank at an interest rate of 10%. After some time, he pays the bank rm 1900 as full and final settlement of the loan. Estimate the duration of his loan.

Jett
4.7
Given: Total amount=A=1900. Principal amount=P=1000. annual interest rate=r=0.1%. Compound interest: A=P\left$1+\frac{r}{100}\right$^n Substitute the given values in above formula, we get 1900=1000\left$1+0.1\right$^n 1.1^n=\frac{1900}{1000} 1.1^n=1.9 apply natural logarithm on both sides, we get \ln\left$1.1^n\right$=\ln\left$1.9\right$ n\cdot\ln\left$1.1\right$=\ln\left$1.9\right$ n=\frac{\ln\left$1.9\right$}{\ln\left$1.1\right$} n=6.734. Therefore, The duration of the loan in compounding period is 6.734.

Frequently asked questions $FAQs$
Question: Find the value of sinh$3$ - tanh$2$ + sech$1$
+
Math Question: How does changing the coefficient 'a' in the standard parabola function $𝑦 = ax^2$ affect the shape and position of the graph?
+
What is the formula to find the perimeter of a square?
+