Final answer:
To calculate the simple interest rate (R), find the interest earned, which is the difference between the future value and the principal, then divide by the product of the principal and the time period. For the given scenario, the simple interest rate is 4.5%.
Step-by-step explanation:
The student is asking for help with calculating the simple interest rate on a loan based on the amount borrowed (principal), the future value of the loan, and the time period.
To find the simple interest rate (R), we use the formula for simple interest: Interest = Principal × rate × time.
The interest earned in this case is the difference between the future value (A) and the principal (P), which is
$7315 - $7000 = $315.
As time (T) is 1 year, we can rearrange the formula to solve for the rate (R): R = Interest / (Principal × Time).
Plugging in the given values, we get:
R = $315 / ($7000 × 1 year)
= 0.045 or 4.5%
Therefore, the simple interest rate for the loan is 4.5%.