Question

I = $141.60; P = $590; t = 6 years
Find the rate

Answer 1

To find the rate, you need to have the equation for r.

Using the simple interest formula:

I = P • r • t

Divide both sides by P•t to isolate r:

I / P • t = (P • r • t)/ P • t

I / P • t = r

Now that we have the formula for r, substitute the given values into the equation:

r = $141.60/($590 • 6)
r = 0.04 or 4%

Therefore, the interest rate is 4%