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Natalija [7]
3 years ago
14

A loan worth $1000 collects simple interest each year for 6 years. At the end of that time, a total of $1270 is paid back. Deter

mine the percentage rate for this loan?
Mathematics
1 answer:
Korolek [52]3 years ago
5 0

Answer:

The percentage rate is 4.5%

Step-by-step explanation:

The simple interest earned in this situation is $1270 - $1000, or $270.

the simple interest formula is i =prt.

Here, i = $270 = ($1000)(r)(6 yr).

                $270

Then r = ------------------- = 0.045

                $1000(6 yr)

The percentage rate is 4.5%

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