SOLUTION: miguel borrowed 18000.00 for 2 years and ending up paying 180.00 in simple interest. what was the interest rate?

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Question 1113449: miguel borrowed 18000.00 for 2 years and ending up paying 180.00 in simple interest. what was the interest rate?
Answer by 4419875(21) About Me  (Show Source):
You can put this solution on YOUR website!
We know that i=prt. By algebraically manipulating, we are going to isolate r:
Apply division property of equality >> i%2Fpt=%28%28prt%29%2Fpt%29 then cancel out the variables and now we have derived our rate formula +i%2Fpt=r+
Given: i= 180.00
p= 18,000
r=?
t=2
Substitute the values:
+180%2F%2818000%29%282%29=r+

where r=0.005 or simply 0.5%