Final answer:
To find the interest rate of a simple interest loan, we use the formula r = I / (Pt). With the given values, the interest rate is calculated to be 7%.
Step-by-step explanation:
The student is asking about the interest rate on a loan with simple interest. Simple interest can be calculated using the formula I = Prt, where I is the interest, P is the principal amount, r is the rate of interest per year, and t is the time in years that the money is borrowed. To find the interest rate, we can rearrange the formula to r = I / (Pt).
In the given problem, the simple interest is $4,200, the principal amount (P) is $6,000, and time (t) is 10 years. Using the rearranged formula:
r = $4,200 / ($6,000 × 10)
r = $4,200 / $60,000 = 0.07
Therefore, the interest rate is 7%.