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
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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(32388) (Show Source):
You can put this solution on YOUR website! I=$90
P=$1500
t=6 months Simple interest formula. Re-arrange the formula. Substitute.
r=6% per 6 month period (Rate for 6 month period).
r=12% per year, (Rate for 12 month period, the traditional time period).
