Answer: 8
Step-by-step explanation:
The formula to calculate the simple interest is given by :-
[tex]S.I. =Prt[/tex], where P is the principal amount , r is rate of interest and t is time.
Given: The principal amount : P = $225
The rate of interest : r = 3.5% =0.035
Simple Interest : SI = $63
Put these value in the above formula , we get
[tex] 63=225\times0.035t\\\\\Rightarrow\ t=\dfrac{63}{225\times0.035}\\\\\Rightarrow\ t=8[/tex]
Hence, the term of loan = 8
