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Tresset [83]
2 years ago
11

URGENT PLEASE: You purchase a new guitar and take out a loan for $450. You have 18 equal monthly payments of $28 each. What is t

he simple interest rate for the loan? Round to the nearest tenth of a percent, if necessary.
Mathematics
1 answer:
kramer2 years ago
8 0
Answer:
8%

Step-by-step explanation:
The amount repaid is ...
A = P(1 +rt)
Filling in the given values, we can find r.
(18·28) = 450(1 +r(18/12)) . . . . . t is in years
504 = 450 + 675t

54/675 = 0.08 = 8%

The simple interest rate on the loan is 8%.
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