<PRE><B>Question 132708</B>
Sarah needs to borrow $1500 for her school tutition. 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?
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I = Prt
90 = 1500*r*6
90 = 9000r
r = 90/9000
r = 0.01
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Rate seems to be 1% per month or 12% per year.
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Cheers,
Stan H.</PRE>