Joel borrowed $18,000 for 6 years at simple interest to purchase a vehicle. If Joel repaid a total of $20,953.80, at what rate did he borrow the money?
The formula is I=prt I interest owed 2953.8 (20,953.8−18,000) P principle 18000 R interest rate? T time 6 years Solve for r by dividing both sides by pt to get R=I/pt R=2,953.8÷(18,000×6) R=0.0274×100 R=2.74%
