A loan worth $4500 collects simple interest each year for 12 years. At the end of

that time, a total of $7605 is paid back. Determine the APR for this loan.
Type your answer in the box below. Round your percentage to 2 decimal places.
Your answer should be in the form X.XX%. DO NOT type the %.

could someone help me out i’ve been stuck for awhile and can’t figure it out.

1 answer

4500(1 + 12r) = 7605
r = 0.0575 or 5.75%