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If the simple interest on $5000 for 9 years is $3150 then what is the interest rate ?

2 Answers

3 votes

The simple interest formula is I=PRT. Plug all of the numbers in.


Interest = 3150

Principal = 5000

Rate = r

Time = 9

3150 = (5000)(r)(9)

Simplify.

3150 = 45000(r)

Divide both sides by 45000.

.07 = r

Move the decimal two places to the right to make it a percentage.

7%

User RNHTTR
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User Yhager
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