Question

The total simple interest owed on a loan of $8,000.00 after 60 months is $1,280.00. What is the yearly interest rate on the loan? Show your work.​

Answer 1

3.2%

Explanation:

1280/5=256 interest per year

principal x interest rate =interest per year

8000 x interest rate =256

interest rate =256/8000

interest rate =.032 or 3.2%