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RoseWind [281]
3 years ago
12

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

nterest rate of the loan?
A. 1%
B. 6%
C. 10%
D. 12%
SAT
2 answers:
cestrela7 [59]3 years ago
7 0

Answer:

D. 12%

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.

Taya2010 [7]3 years ago
7 0
The answer is D: 12% :D
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The best phrase to fit in the second sentence that would both be grammatically correct and convey the same meaning, is therefore "must have."

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