April took out a $600 loan from the bank.At the end of 5 years, she pays back the principle,plus $60 simple interest.What was th

Question

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April took out a $600 loan from the bank.At the end of 5 years, she pays back the principle,plus $60 simple interest.What was th

e annual interest rate?

Mathematics

1 answer:

Vedmedyk [2.9K] · Answer 1 · 2022-03-06T07:49:38+03:00

Answer:

April took out a loan of $600 and paid it back with simple interest of $60 after 5 years. The formula to calculate interest is given the principal and the time and the interest rate is . For this problem we have to find the interest rate given . To archive that , we can just solve the equation making the interest rate the subject of the formula as shown below,

I= Prt

=> r= I/Pt

=> r= 60/600x5 = 1/50

The interest rate is 1/50 or 0.02 as a decimal. The interest rate is 2% as a percentage.