Question

Find the simple interest earned to the nearest cent for each Principal,interest Rate and Time. Remember to convert percents into decimals. Don't forget your dollar sign and decimal placement in your answer.

1.Jameera received a $3000 car loan.She plans on paying off the loan in 2 years.At the end of 2 years she will have paid $450 dollars in interest.What is the simple interest rate of the car loan?

Answer 1

Interest to pay = P*R*T

450=3000xRx2
R=0.075 (7.5%)

So simple interest rate is 7.5% per year