SOLUTION: Sarah needs to borrow $1500 for her school tuition. She borrows the money on a six month short term note that charges simple interest. After 6 months, she owes $90.00 in interest

Algebra ->  Algebra  -> Customizable Word Problem Solvers  -> Finance -> SOLUTION: Sarah needs to borrow $1500 for her school tuition. She borrows the money on a six month short term note that charges simple interest. After 6 months, she owes $90.00 in interest      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com
Ad: Algebrator™ solves your algebra problems and provides step-by-step explanations!
Ad: Algebra Solved!™: algebra software solves algebra homework problems with step-by-step help!

   

Question 106307: Sarah needs to borrow $1500 for her school tuition. She borrows the money on a six month short term note that charges simple interest. After 6 months, she owes $90.00 in interest. What is the simple interest rate being charged on this note?
Answer by Fombitz(13828) About Me  (Show Source):
You can put this solution on YOUR website!
I=$90
P=$1500
t=6 months
I=PrtSimple interest formula.
r=I%2FPtRe-arrange the formula.
r=90%2F%281500%281%29%29Substitute.
r=6% per 6 month period (Rate for 6 month period).
r=12% per year, (Rate for 12 month period, the traditional time period).