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Practice: Find the interest rate on a $1,500 loan with $1,125 in interest over 3 years.​

User Kings
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1 Answer

5 votes

Answer: 25%

Explanation:

The formula to calculate the simple interest is given as:

Interest = (Principal × Rate × Time) / 100

We then slot the values given into the formula

1125 = (1500 × Rate × 3)/100

Cross multiply

1125 × 100 = 4500 × Rate

Rate = 112500 /4500

Rate = 25

The interest rate is 25%.

User Joshua Noble
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