Jenna borrowed Php 5,000 for 3 years and had to pay Php 1,350 simple interest at the end of that time. What rate of interest did she pay?
Question
Jenna borrowed Php 5,000 for 3 years and had to pay Php 1,350 simple interest at the end of that time. What rate of interest did she pay?
Solution
To find the rate of interest, we can use the formula for simple interest which is I = PRT, where:
I = Interest P = Principal amount (the initial amount of money) R = Rate of interest T = Time the money is borrowed for
In this case, we know that:
I = Php 1,350 P = Php 5,000 T = 3 years
We want to find R. So, we rearrange the formula to solve for R:
R = I / (PT)
Substituting the given values:
R = 1350 / (5000 * 3)
R = 0.09
So, the rate of interest Jenna paid is 0.09 or 9%.
Similar Questions
Alex borrowed Php4,000 for 5 years at 6% simple interest rate to pay for his band equipment. How much interest is that?
After 12 years, a deposit of Php 10,000 into your college account has earned Php 6,000 in interest payments. What simple interest rate did the account earn?*3 points25%50%7%5%
Jessica deposits $2000 into an account that pays simple interest at a rate of 3% per year. How much interest will she be paid in the first 5 years?$
. 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 Php1,500 at a simple interest rate of 9% per year for 6 months, what is the total interest you will pay?Question 13Answera.Php112.50b.Php90c.Php67.50d.Php75Clear my choice
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.