Question

Fred started a new e-commerce business and borrowed 15000 for 12 years to get the business up and running. The interest is 18000. Find the rate

Answer 1

The rate is 6.94 %

Explanation:

Given;

Amount borrowed by Fred to start up the e-commerce, P = 15000

time of investment, t = 12 years

interest, I = 18000

The rate is given by the following equation;

P = IRt

R = P / It

where;

R is the rate

P is the principal

I is the interest

t is the time

R = (15000) / (18000 x 12)

R = 0.0694

R = 6.94 %

Therefore, the rate is 6.94 %