Question
What percentage interest rate is a loan that charges one hundred dollars in simple annual interest over 5 years on a one thousand dollar balance?
Answers
Ms. Sue
I = PRT
100 = 1,000 * R * 5
100 = 5,000R
100/5,000 = R
0.02 = R
Rate = 2%
100 = 1,000 * R * 5
100 = 5,000R
100/5,000 = R
0.02 = R
Rate = 2%