Question

I have a math midterm in 2 days and I really don't get ANYTHING. April took out a $600 loan from the bank. At the end of 5 years, she pays back the principal, plus $60 simple interest. What was the annual interest rate? (It mean a lot if you could help haha)

Answer 1

2% interest rate.

Explanation:

Given:

• April took out a $600 loan.
• After 5 years, she pays it back.
• She has payed $60 in simple interest.

Let's find the interest rate using the given values:

60 =
`(600((r)5))/(100)`

(r represents the possible percentage amount of the variable x)

(100 is being divided by the numerator to simplify the answer)

Solve:

600(5) = 3000

3000(r)/100

Divide by 100:

60 = 30r

Divide both sides of the equation by 30:

2=x

*r is represented by x.

Therefore, the interest rate is 2%.

Best of luck on your midterms!