Question

✓

The principal P is borrowed and the loan's future value A at time t is given. Determine the loan's simple interest rater.
P = $6000.00, A = $6180.00, t = 1 year
% (Round to the nearest tenth of a percent as needed.)

Answer 1

rate = (A - P) / (P * t)

Plugging in the values given, we get:

rate = ($6180.00 - $6000.00) / ($6000.00 * 1 year) = 0.03

This is a rate of 3%. To express it as a percentage, multiply it by 100% to get 3%. Rounded to the nearest tenth of a percent, the simple interest rate is 3.0%.