Question

Steve borrowed $750 for a new dresser. He made 9 monthly payments to repay the loan. He paid $45 interest. What is his
simple interest rate?
12%
9%
4.5%
8%
6%​

Answer 1

Answer:

Not 6%

Explanation:

Trust

Answer 2

The simple interest rate is 8%.

Calculation of the simple interest rate;

Since the borrowed amount is $750

The number of months is 9

And, the simple interest is $45

We know that

SImple interest = Principal * rate of interest * time period

$45 = $750 * rate of interest * 9/12

$45 = $750 * rate of interest * 0.75

So, the rate of interest is 8%

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