Question

Determine the interest rate for a $2000

loan that will be paid off in 3 years with interest
totaling $360. In order to find the interest rate,
solve the formula for r.

Answer 1

6%

Explanation:

Simple interest=principal×rate×time

Interest=$360

Principal=$2000

Rate=r

Time=3 years

Simple interest=principal×rate×time

360=2000×r×3

360=6000r

r=360/6000

=0.06

r=0.06×100

=6%