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5 votes
Jack borrowed $ 4,000.00 and paid $ 585.00

in simple interest after 4 year 6 months. What
was the annual rate of interest?​

User Bharath R
by
8.6k points

1 Answer

6 votes

Answer:

3.25%

Explanation:

The formula for simple interest is I = PRT, where I = interest earned/paid, P = principal amount deposited or borrowed, R = rate of interest as a decimal, and T = time in years.

I = PRT

585 = (4000)(r)(4.5)

585 = 18,000r

r = 0.0325

Multiply by 100 to get the percentage

0.0325 = 3.25%

User Barracuda
by
9.0k points

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