Question

Samantha asked for a loan from the bank of 4,500 plans to repay it in 4 years Samantha will have to repay it 900 of interest what is the simple interest rate

Answer 1

Correct answer: r = 5%

Explanation:

Given:

L = 4,500 Loan

t = 4 years time to repay

I = 900 Interest

r = ? simple interest rate

The formula for calculating simple interest is:

I = (L · r · t) / 100

r = ( I · 100) / L · t

r = (900 · 100) / 4,500 · 4 = 90,000 / 18,000 = 5 %

r = 5 %

God is with you!!!

Answer 2

5

Explanation:

S.I is defined mathematically as

[P x R xT]/100

P -Principal amount borrowed

R- the rate

T -time duration

S.I -simple interest [in this case 900]

S.I =[4500 x R x 4]/100

900 =[4500 x R x 4]/100

900x100 = 4500 x 4 x R

[900 x 100]/[4500 x 4] = R [by changing the subject of the formula to reflect R on the right side; you divide both sides by 4500 x 4]

90000/18000 =5

5=R

Rate =5%