Question

i Jamerra received a 3,000 car loan she plans on paying off the loan in 2 years at the end of 2 years Jamerra will have paid 450 in interest what is the simple interest rate in the car loan

Answer 1

To calculate the simple interest rate on Jamerra's car loan, we can use the formula:

Interest = Principal * Rate * Time

In this case, the principal (P) is $3,000, the interest (I) is $450, and the time (T) is 2 years. We need to determine the rate (R).

Plugging the given values into the formula:

$450 = $3,000 * R * 2

Dividing both sides of the equation by $6,000:

$450 / $6,000 = R * 2

0.075 = R * 2

Dividing both sides of the equation by 2:

0.075 / 2 = R

R = 0.0375

So, the simple interest rate on Jamerra's car loan is 0.0375, which is equivalent to 3.75%.