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3 years ago

13

Please be quick, I need this really soon!

1 answer:

Elena-2011 [213]3 years ago

8 0

Let's solve this problem step-by-step.

STEP-BY-STEP SOLUTION:

Let's first establish the simple interest formula which we will require to solve this problem as displayed below:

Simple Interest = Principal × Rate of Interest × No. of Time Periods

I = PRN

Now let's substitute the values from the problem into this formula and solve as displayed below:

I = $15

P = $150

R = ?

N = 2 years

I = PRN

15 = 150 × R / 100 × 2

R / 100 = 15 / ( 150 × 2 )

R / 100 = 15 / 300

R = 5 / 100 × 100

R = 5%

ANSWER:

The simple annual interest rate for the loan is 5%. Therefore, the answer is:

B ) 5.0%

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