Joel borrowed $18,000 for 6 years at simple interest to purchase a vehicle. If Joel repaid a total of $20,953.80, at what rate d

Question

Igoryamba

3 years ago

12

Joel borrowed $18,000 for 6 years at simple interest to purchase a vehicle. If Joel repaid a total of $20,953.80, at what rate d

id he borrow the money?

Mathematics

1 answer:

Artyom0805 [142] · Answer 1 · 2022-07-27T11:57:51+03:00

Artyom0805 [142]3 years ago

7 0

The formula is
I=prt
I interest owed 2953.8 (20,953.8−18,000)
P principle 18000
R interest rate?
T time 6 years
Solve for r by dividing both sides by pt to get
R=I/pt
R=2,953.8÷(18,000×6)
R=0.0274×100
R=2.74%

Hope it helps!