Answer:
The loan's simple interest rate to the nearest tenth of a percent is 6.5%.
Explanation:
To determine the loan's simple interest rate, we can use the formula for simple interest:
I = P * r * t
Where:
I is the interest earned or charged
P is the principal amount
r is the interest rate
t is the time in years
In this case, we are given:
P = $4,600.00
A = $4,824.25
t = 9 months
We need to solve for r. First, let's calculate the interest earned:
I = A - P
I = $4,824.25 - $4,600.00
I = $224.25
Now, we can substitute the values into the formula and solve for r:
I = P * r * t
$224.25 = $4,600.00 * r * (9/12)
Simplifying the equation:
224.25 = 4600r(9/12)
224.25 = 3450r
r = 224.25 / 3450
r ≈ 0.065
To express the interest rate as a percentage, we multiply by 100:
r ≈ 0.065 * 100
r ≈ 6.5%
Therefore,
The loan's simple interest rate is 6.5%.