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Find the simple interest rate of a loan of $5,000 that is made for three years and requires $1,762.50 in interes

User Olshevski
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1 Answer

4 votes
4 votes

Answer:

11.75%

Explanation:

The formula for Simple Interest is given as:

I = PRT

Where in the question

I = Interest = $,1762.5

P = Principal = $5,000

T = Time= 3 years

R = Simple Interest rate ??

To solve for R, the formula is given as:

R = I/PT

R = $1,762.5/5,000 × 3

R = 0.1175

Converting to percentage

= 0.1175 × 100

= 11.75%

User Niken
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