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olga55 [171]
3 years ago
9

Mary borrowed $700 from a bank for 3 years and was charged simple interest. The total interest that she paid on the loan $42. As

a percentage, what was the annual interest rate of her loan
Mathematics
1 answer:
Mashcka [7]3 years ago
3 0

Answer:

2 %

Step-by-step explanation:

Money borrowed, Principal, P = $ 700

time of investment, T = 3 years

Total interest paid, Simple interest, S.I = $ 42

Let the rate of interest is R.

Use the formula for simple interest.

S.I. =\frac{P\times R\times T}{100}

By substituting the values

42 =\frac{700\times R\times 3}{100}

4200 = 2100 R

R = 2 %

Thus, the rate of interest is 2%.

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