Joanne and ed greenwood built a new barn with an attached arena. to finance the loan, they paid $1,307 interest on $45,000 at 4.0%. what was the time, using exact interest? (do not round intermediate calculations. round up your answer to the nearest day.) time

The loan was taken for 265 days.

We arrive at the answer as follows:

First we find the ratio of interest paid to the total loan amount to determine the interest rate:

Interest paid  = $1,307

Loan Amount = $45,000

Since the interest rate calculated above is less than the annual interest rate at 4%, we conclude that the loan taken was for a period of less than one year.

We can determine the period for which the loan was taken as follows:

Let 'x' be the time for which the loan was taken.

We need to solve for x in the proportion below

0.04 : 365 ::  0.029044444:x

Solving we get,

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