Question

If the simple interest on ​$6 comma 000 for 2 years is ​$480​, then what is the interest​ rate?

Answer 1

Answer:

4%

Step-by-step explanation:

To solve this problem we can use a modified version of the simple interest formula which is shown below:

$r=\frac{I}{Pt}$

I = interest amount

P = principal amount

t = time (years)

Lets plug in the values:

$r=\frac{480}{(6,000)(2)}$

$r=0.04$

The last step is to convert 0.04 into a percent:

0.04(100) = 4

The interest rate is 4%.