SOLUTION: 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.
P = $6000.00, A = $6450.00, t
Question 1176669: 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.
P = $6000.00, A = $6450.00, t = 1 year
__% (Round to the nearest cent as needed.) Found 2 solutions by ewatrrr, ikleyn:Answer by ewatrrr(24785) (Show Source): You can put this solution on YOUR website!
Hi
Yes! Use Simple Interest Formula:
= .075 0r 7.5% interest rate
Wish You the Best in your Studies.
Answer by ikleyn(52790) (Show Source): You can put this solution on YOUR website! .
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.
P = $6000.00, A = $6450.00, t = 1 year
__% (Round to the nearest cent as needed.)
~~~~~~~~~~~~~~~~
@ewatrrr solved the problem INCORRECTLY.
She mistakenly used the formula for the compound account,
although the problem asked to find the solution for a simple interest.
I came to bring a correct solution.
P = A +
6450 = 6000 + 6000*r*1
r = = 0.075 = 7.5%. ANSWER
Solved.
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To see many other similar and/or different solved problems on simple interest accounts, look into the lesson
- Simple interest percentage problems
in this site.