Andrew borrows $79,500 for 2 years and earns $10,017 of simple interest. Calculate the interest rate?
Question
Andrew borrows 10,017 of simple interest. Calculate the interest rate?
Solution
To calculate the interest rate, we can use the formula for simple interest which is I = PRT, where I is the interest, P is the principal amount (the initial amount of money), R is the rate of interest, and T is the time in years.
In this case, we know: I = 79,500 T = 2 years
We want to find R. So, we rearrange the formula to solve for R:
R = I / (P * T)
Substituting the given values:
R = 79,500 * 2)
R = 159,000
R = 0.063
To express the interest rate as a percentage, we multiply by 100:
R = 0.063 * 100 = 6.3%
So, the interest rate is 6.3%.
Similar Questions
Gary borrowed $1200 from a bank. He had to repay $2.20 as simple interest after 2 months. Determine the interest rate per annum.
. Emilio borrows Php 1200 from a bank with 8% simple interest per year. How much will he have to pay back total in 2 years?
If you borrow $1,000 at an annual interest rate of 5% for 2 years using simple interest, how much interest will you pay?*$150$50$100$200
Ahmet borrows $700 and is charged compound interest at 15% per year. How much will he have to pay back in total after 6 years? Give your answer to two decimal places.
(a) $855 simple interest was paid when $4500 was invested at 4.75% per annum.Determine the period of investment.(b) Mrs. Woods borrowed a sum of money from a bank at 12.5% per annum for 6 yearsand paid $6375 simple interest. Calculate the sum of money mrs. Wood borrowedfrom the bank.(c) The simple interest on $15 000 for years is $4950. Calculate the rate percent perannum.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.