QuestionA man needed money for college. He borrowed $\$ 5,000$ at $16 \%$ simple interest per year. If he paid $\$ 200$ interest, what was the duration of the loan?
The duration of the loan is $\square$ year. (Round to two decimal places as needed.)

Studdy Solution
Solve for the duration of the loan.
First, simplify the equation: $$200 = 800 \times t$$
Now, solve for $t$ by dividing both sides by 800: $$t = \frac{200}{800}$$
Simplify the fraction: $$t = 0.25$$
The duration of the loan is: $$\boxed{0.25}$$