SOLUTION: The principal P is borrowed and the​ loan's future value A at time t is given. Determine the​ loan's simple interest rate r. P​ = ​$6000.00​, A​ = ​$6450.00, t​

Algebra ->  Equations -> SOLUTION: The principal P is borrowed and the​ loan's future value A at time t is given. Determine the​ loan's simple interest rate r. P​ = ​$6000.00​, A​ = ​$6450.00, t​       Log On


   

Question 1176669: The principal P is borrowed and the​ loan's future value A at time t is given. Determine the​ loan's simple interest rate r.
P​ = ​$6000.00​, A​ = ​$6450.00, t​ = 1 year
​
__% ​(Round to the nearest cent as​ needed.)
Found 2 solutions by ewatrrr, ikleyn:
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!

Hi

Yes!  Use Simple Interest Formula:
A%28t%29+=+P%281+%2Brt%29
A%28t%29+=+P+%2B+Prt%29 

+r+=+%28A-P%29%2FPt+

 +r+=+%286450-6000%29%2F%286000%2A1%29+= .075  0r 7.5% interest rate


Wish You the Best in your Studies.


Answer by ikleyn(52787) About Me  (Show Source):
You can put this solution on YOUR website!
.
The principal P is borrowed and the​ loan's future value A at time t is given. Determine the​ loan's simple interest rate r.
P​ = ​$6000.00​, A​ = ​$6450.00, t​ = 1 year
​
__% ​(Round to the nearest cent as​ needed.)
~~~~~~~~~~~~~~~~


            @ewatrrr solved the problem INCORRECTLY.

            She mistakenly used the formula for the compound account,
            although the problem asked to find the solution for a simple interest.

            I came to bring a correct solution. 


P = A + A%2Ar%2A1


6450 = 6000 + 6000*r*1


r = %286450+-+6000%29%2F6000 = 0.075 = 7.5%.     ANSWER

Solved.

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To see many other similar and/or different solved problems on simple interest accounts,  look into the lesson
    - Simple interest percentage problems
in this site.