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AUFEXC4 11.1.041.
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ASK YOU
The simple interest charged on a 3-month loan of $62,000 is $499. Find the simple interest rate. (Round your answer to one decimal place.)

Helpp Does anyone know how to do this? Thxxx

Answer 1

So we’ll use the interest formula but rearrange it to get the rate of interest:

I=Prt —-> r=I/Pt

We know the principal amount $62000
We also know the interest amount $499 in 3 months, which is our time (t)

Plug in the values: r=499/62000(3)
= 3.2194%

The question asks to round to one decimal so your true answer will be:

3.2% interest rate