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If the simple interest on $6,000 for 3 years is $1,620, then what is the interest rate?

User Fralle
by
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1 Answer

2 votes

Answer:

Interest rate: 9%

Explanation:

Using the simple interest formula: A=P(1+rt)

A=Final amount

P=Principal amount

r=rate

t=time (years)

We just need to put in the information we have from the question and solve for r.

7,620=6000(1+r3)

7,620/6000=1+r3

1.27=1+r3

0.27=r3

r=0.09

r=9%

User Bogdan Calmac
by
3.3k points