Question

Sam borrowed $4,500 for 2 years and had to pay $630 simple interest at the end of

that time. What rate of interest did he pay?
7%
8%
6%
9%

Answer 1

7% interest rate. He borrowed 4500 for two years. The total amount he had to pay additional in interest was 630. 4500x7% is $315. But since it was 2 years you would do 315x2 which equals 630 which was the amount he ended up paying additional for the two years.