SOLUTION: Mario borrows $4800 for 8.5 years at a fixed rate of simple interest. At the end of that time, he owes $8000. What interest rate is he being charged?

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Question 176806: Mario borrows $4800 for 8.5 years at a fixed rate of simple interest. At the end of that time, he owes $8000. What interest rate is he being charged?
Answer by stanbon(57387) About Me  (Show Source):
You can put this solution on YOUR website!
Mario borrows $4800 for 8.5 years at a fixed rate of simple interest. At the end of that time, he owes $8000. What interest rate is he being charged?
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Interest quantity: 8000-4800 = 3200
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I = Prt
3200 = 4800r(8.5)
r = 3200/[8.5*4800] = 0.07843 or 7.843%
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Cheers,
Stan H.