Question

If the simple interest on ​$6 comma 000 for 2 years is ​$480​, then what is the interest​ rate?

Answer 1

4%

Explanation:

To solve this problem we can use a modified version of the simple interest formula which is shown below:

`r=(I)/(Pt)`

I = interest amount

P = principal amount

t = time (years)

Lets plug in the values:

`r=(480)/((6,000)(2))`

`r=0.04`

The last step is to convert 0.04 into a percent:

0.04(100) = 4

The interest rate is 4%.