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April took out a $600 loan from the bank. At the end of 5 years, she pays back the principal, plus $60 simple. What was the interest rate
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April took out a $600 loan from the bank. At the end of 5 years, she pays back the principal, plus $60 simple. What was the interest rate

User Demyanov
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2 Answers

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Isn't it like 600 divided by 5? or no thats the unit rate. sorry I'm not the smartest with this stuff and idk why I'm replying

User Raphael Serota
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Since interest isn't compounded, it doesn't figure into the running total. Interest is only charged on the principal value.
600×.02= 12
12 dollars per year
12×5= 60
600+60= $660

$60 is 10% of the $600 principal
10%÷5 years = 2%
User Oleksandr Holubenko
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