Question

If you have a credit card debt of $2000 and the simple interest for one month is $40, what is the interest rate you are paying?

Answer 1

Solve for: Interest (I) Principal (P) Rate (R) Time Period (t) Where: I = Prt Principal (P): $ 2000 Rate (R): % 40
per year Time (t): 1 month
Time Unit:


Answer:
I = $64.00 or $ 66.67

Equation:
I = Prt
Calculation:
First, converting R percent to r a decimal
r = R/100 = 40%/100 = 0.4 per year,
putting time into years for simplicity,
1 months ÷ 12 months/year = 0.08 years,
then, solving our equation
I = 2000 × 0.4 × 0.08 = 64
I = $ 64.00The simple interest accumulated
on a principal of $ 2,000.00
at a rate of 40% per year
for 0.08 years (1 months) is $64.00 or $ 66.67


Formula:

SI [Interest] = (P x R x T) / 100 
P [sum] = (SI x 100) / (R x T) 
R [Rate/year] = (SI x 100) / (P x T) 
T [Time] = (SI x 100) / (P x R)




Hope this helps!!!!!