Question

P=$4000.00,A=$5300.00,t=5 years
The principal P is borrowed and the loan's future value A at time t is given. Determine the loan's simple interest rate r.​

Answer 1

Answer:

The rate of Simple Interest is 6.5 %  

Step-by-step explanation:

Given as :

Principal = $ 4000.00

Amount = $ 5300.00

The time period of loan = 5 years

Let The rate of simple interest = R

Now,

From Simple Interest method

Simple Interest = $\frac{Principal\times Rate\times Time}{100}$

 And , Simple Interest = Amount - Principal

  So ,  Simple Interest = $ 5300.00 - $ 4000.00

  Or,   Simple Interest = $ 1300

Now, Simple Interest = $\frac{Principal\times Rate\times Time}{100}$  

So,     $ 1300  = $\frac{ 4000\times Rate\times 5}{100}$  

Or,     $ 1300 × 100 = $ 4000 × Rate × 5

Or,     Rate  =  $\frac{1300\times 100}{4000\times 5}$

Or,     Rate  = 6.5  

Hence The rate of Simple Interest is 6.5 %   Answer