Lauren M.

asked • 02/22/22

Duration of loan

Grace had a maturity value of $6,682.50 on an original investment of $6,000. She earned 6.5% annual simple interest. What was the duration of Grace’s investment?

Peter R.

tutor
Is there a typo somewhere? At 6.5% simple interest, the $682.50 earned in interest would take a little less than 2 years, as Grace gets $390 in interest each year (0.065 x $6,000). Eqn is 6682.50 = 6000(1 + .065t).
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02/23/22

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