SOLUTION: To start a mobile dog-grooming service, a woman borrowed $2000. If the loan was for 2 years and the amount of interest was $124, what simple interest rate was she charged?

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Question 897722: To start a mobile dog-grooming service, a woman borrowed $2000. If the loan was for 2 years and the amount of interest was $124, what simple interest rate was she charged?
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
Simple Interest

Interest = Principal*Rate*Time

I = P*r*t

124 = 2000*r*2

124 = 2000*2*r

124 = 4000*r

124/4000 = r

0.031 = r

r = 0.031

Convert 0.031 to a percentage: 0.031*100 = 3.1%

The simple interest rate is 3.1%