SOLUTION: Find the interest rate for a simple interest loan with P=$1420, I=$306.72, t=3 years A. 7.2% B. 1.54% C. 6.5% D. 9%

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Find the interest rate for a simple interest loan with P=$1420, I=$306.72, t=3 years A. 7.2% B. 1.54% C. 6.5% D. 9%      Log On

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Question 87173: Find the interest rate for a simple interest loan with P=$1420, I=$306.72, t=3 years


A. 7.2%
B. 1.54%
C. 6.5%
D. 9%
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
Use the simple interest formula:

I=Prt


306.72=%281420%29r%283%29 Plug in P=1420, I=306.72, and t=3


306.72=4260r Multiply

306.72%2F4260=r Divide both sides by 4260

0.072=r

Now multiply the figure by 100 to get a percentage:

100%2A0.072=7.2

So the interest rate is 7.2%