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Please help!!If the simple interest on $7,000 for 4 years is $1,960, then what is the interest rate?

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Use the formula for the simple interest


I=p\cdot r\cdot t

I= interest

p= initial deposit

r=rate

t= time

clear the equation for r


(I)/(p\cdot t)=r

replace data in the formula


\begin{gathered} (1960)/(7000\cdot4)=r \\ (1960)/(28000)=r \\ 0.07=r \end{gathered}

pass the decimal to percentage

7%

the interest rate is 7%

User Nitin Bansal
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