Question

Suppose you borrow $1000 for 3 years and you owe $200 interest. what is the interest rate?

Answer 1

6.67%

Explanation:

By question I borrow $1000 for 3 years and I owe $200 interest . We can use the formula of Simple Interest as ,

`\implies SI =( P*R*T)/(100)`

• Plug in the values .

`\implies \$200 =(3*\$1000*R )/(100)\\\\\implies R = ( \$ 200 * 100)/(3*\$ 1000) \\\\\implies\underline{\underline{ R = 6.67 \%}}`