SOLUTION: To start a mobile dog grooming service, a woman borrowed $3000. If the loan was for 2 years and the amount of interest was $204, what simple interest rate was she charged?

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Question 1125761: To start a mobile dog grooming service, a woman borrowed $3000. If the loan was for 2 years and the amount of interest was $204, what simple interest rate was she charged?
Found 2 solutions by solver91311, MathLover1:
Answer by solver91311(24713) About Me  (Show Source):
You can put this solution on YOUR website!


The simple interest rate is equal to the amount of interest charged each year divided by the principal amount of the loan.


John

My calculator said it, I believe it, that settles it

Answer by MathLover1(20850) About Me  (Show Source):
You can put this solution on YOUR website!

use simple interest formula:
I=Prt where I is interest, P is principal (initial value), r is interest rate and t is time in years
given:
a woman borrowed $P=3000
the loan was for t=2 years
the amount of interest was $I=204

204=3000%2Ar%2A2
r=204%2F%283000%2A2%29
r=cross%28204%29102%2F%283000%2Across%282%29%29
r=cross%28102%2951%2Fcross%283000%291500
r=51%2F1500
r=0.034
so, interest rate is 3.4%