Question

John Carlo takes a car to a little business to borrow some money, John Carlo is given 3,400.00.00. He must pay back the $3,400.00 in addition to a $1,000.00 fee in 4 months.

What is the simple interest rate is he being charged?

Answer 1

Explanation:

simple interest I = Prt

I = $1,000 = 3,400r (4/12)

⇒ 3,400r (4/12) = 1,000

⇒ 3400r = 333.333

⇒ r = 0.098

≈ 9.80 %