Question

Jasmine borrowed $15,000 for 8 years and she paid $6,600 in interest. What was the interest rate for Jasmine's loan?

Answer 1

Answer:

5.5%

Step-by-step explanation:

To find the interest rate, use the equation:  I = prt

I = Interest = $6,600

p = principal = $15,000

r = rate = unknown

t = time = 8 years

Now plug the numbers into the equation.

6,600 = 15,000 * r * 8

6,600 = 120,000 * r

Now isolate the variable by dividing both sides of the equation by 120,000.

0.055 = r

Now change the rate to a percent by moving the decimal point 2 digits to the right.

5.5% = r   OR   r = 5.5%