Harper borrowed $6,200 from the bank. 1 year later, Harper owes the bank $6,696. What was the percentage rate of simple interest

Question

3 years ago

14

on the loan?

1 answer:

Fofino [41] · Answer 1 · 2022-05-19T08:43:12+03:00

The rate of simple interest for loan was 8%

Step-by-step explanation:

Given

Principal amount = p = $6200

Time = t = 1 year

Amount after interest = $6696

We have to calculate the amount of interest first

So,

Interest amount =I= Amount after interest - principal amount

= 6696-6200

=$496

The formula for simple interest is:

$I =prt\\Here\\r\ is\ rate\\p\ is\ principal amount\\t\ is\ timePutting\ the\ values\\496=6200*r*1\\r=\frac{496}{6200}\\r=0.08\\r=0.08*100\\r=8\%$

The rate of simple interest for loan was 8%

Keywords: Simple interest, percentage

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