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FinnZ [79.3K]
3 years ago
14

Pablo borrowed $50,000 to start a business. Three years later, he repaid the $50,000 along with an interest of $9,375. What was

the annual interest rate?
Mathematics
1 answer:
kiruha [24]3 years ago
6 0

Answer:

The annual interest rate is 6.25%

Step-by-step explanation:

We have been given that

P = $50,000

I = $9,375

t = 3 years

r = ?

The formula for simple interest is given by

I=Prt\\\\\text{Substituting the known values, we get}\\\\9375=50000(r)\cdot3\\\\r=\frac{9375}{50000\cdot3}\\\\r=0.0625\\\\r=6.25\%

Therefore, the annual interest rate is 6.25%

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