Question

the simple interest on a loan of $4300 over 6 quarters is $161.25. If the annual interest rate is r, find r as a percentage correct to one decimal place.

Answer 1

Answer:

Step-by-step explanation:

1. Let I = simple interest, r = the rate, t = time (years), P = the initial amount of the loan.

2. I = Prt     [the simple interest formula]

3. t = 1.5 years (1 quarter = 3 months so 6 quarters = 18 months or 1.5 years)

4. 161.25 = 4300r(1.5)

5. 0.025 = r   (multiply by 100 to make r a percentage)

6. r = 2.5% (Ans)