Question

Mason took out an $800 loan from the bank. At the end of 5 years, he pays back the principal, plus $120 simple interest. What was the interest rate? PLZ HELP ME

Answer 1

Simple interest=principal×rate×time
I=prt

Simple interest=120
Time=5
Principal=800

120=(800)(5)r
120=4000r
120/4000=4000/4000r
3/100=r
3%=r

Rate=3%

Answer 2

Answer : The interest rate was, 3 %

Step-by-step explanation :

Given:

Principle = $800

Simple interest (S.I) = $120

Time = 5 years

Now we have to determine the interest rate.

Formula used :

`S.I=(PRT)/(100)`

where,

P = principle

R = interest rate

T = time

S.I = simple interest

Now put all the given values in the above formula, we get:

`\$120=((\$800)* R* (5))/(100)`

`R=(\$120* 100)/((\$800)* (5))`

`R=3\%`

Thus, the interest rate was, 3 %