Question

A person collected ​$700 on a loan of ​$600 they made 5 years ago. If the person charged simple​ interest, what was the rate of​ interest? The interest rate is ​%. ​(Type an integer or decimal rounded to the nearest hundredth as​ needed.)

Answer 1

Answer:

Rate= 3 1/3%

Or Rate= 3.33%

Step-by-step explanation:

Final amount collected= $700

Initial amount given out= $600

Interest made= Final amount - initial amount

Interest made= $700-$600

Interest made= $100

Type of interest rate = simple

Number of years = 5

PRT/100= interest

R=(100*interest)/(PT)

R= (100*100)/(600*5)

R= 10000/3000

R= 10/3

R= 3 1/3%

Or R= 3.33%