SOLUTION: Sarah needs to borrow $1500 for her school tutition. She borrows the money on a six monthe short term note that charges simple interest. After 6 months, she owes $90.00 in interest
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Question 132708This question is from textbook Fundamentals of Algebric Modeling
: Sarah needs to borrow $1500 for her school tutition. She borrows the money on a six monthe 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? This question is from textbook Fundamentals of Algebric Modeling
You can put this solution on YOUR website! 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.
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