Question

Jenna borrowed $5,000 for 3 years and had to pay $1,350

simple interest at the end of that time. What rate of interest

did she pay?

Answer 1

0.09 or 9%

Explanation:

Formula:

I = Prt

r = I/(Pt)

Given:

I = 1350

P = 5000

t = 3

Finding r:

r = I/(Pt)

r = 1350/(5000 x 3)

r = 1350/15000

r = 0.09

0.09 or 9%