Question

Frank borrowed $5,000 with an annual simple interest rate. The amount of interest he owed after 6 months was $300. What is the interest rate of the loan?

A. 1%
B. 6%
C. 10%
D. 12%

Answer 1

12% yep it’s 12 i think

Answer 2

D. 12%

Step-by-step explanation:

300 / 5,000 =0.06 x 100 =6% Interest rate for the 6-month period.

6% x 2 =12% nominal annual interest rate - ccompounded semi-annually.