Question

Cassandra obtains a loan with simple interest to buy a car that costs $8,500. If Cassandra pays $1,020 in interest during the four-year term of the loan, what was the rate of simple interest? I need it in percent. For example 74%.

Answer 1

3%

Explanation:

Answer 2

3%

Explanation:

I = Prt

I = 1020

P = 8500

t = 4

1020 = (8500)(4)r

1020 = 34000r

r = 0.03