Question

vanessa borrowed $1,867 from Mr. Harper to address an unpredicted expense. If she paid the money back in 4 months along with $93.35 as simple interest, what was the rate of interest that Mr. Harper lent the money at?

Answer 1

Mr. Harper lent the money to Vanessa at an interest rate of 1.25%

Step-by-step explanation:

To find the rate of interest, we can use the formula for simple interest:

Simple Interest = Principal * Rate * Time

In this case, the principal amount borrowed by Vanessa is $1,867 and the time is 4 months. The interest amount is given as $93.35.

Substituting these values in the formula, we get:

$93.35 = $1,867 * Rate * 4

Simplifying the equation, we have:

Rate = $93.35 / ($1,867 * 4)

Rate = 0.0125, or 1.25%

Therefore, Mr. Harper lent the money at an interest rate of 1.25%.