For Simple Interest Accounts, the Amount a Accumulated or Due

Multiple Choice

For simple interest accounts, the amount A accumulated or due depends on the principal p, interest rate r, and the time t in years according to the formula A = p(1 + rt) . Mary borrowed $7700 at 17.5% simple interest. If she repaid $18,749.50, what was the term of the loan?

A) 8.0 years
B) 8.2 years
C) 8.4 years
D) 8.6 years