Question

With a principal value of $7,400 over 4 years, how much would the interest rate have to be to get $2,220 in interest? Tip: Don't forget to convert your answer from decimal to percent form. Round your answer to the nearest tenth.

The interest rate will be
%.

Answer 1

Answer: To find the interest rate, we can use the formula:

Interest = Principal * Rate * Time

where Principal = $7400, Interest = $2220, and Time = 4 years.

Rearranging the formula, we have:

Rate = Interest / (Principal * Time)

Substituting the given values, we get:

Rate = $2220 / ($7400 * 4)

ate = 0.075

Converting to percent form, the interest rate would be 7.5%.