The simple interest charged on a 5-month loan of $19,000 is $631. Find the simple interest rate. (Round your answer to one decimal place.)

Question

I tried to do it the way I was told to and keep getting the wrong answers.

 

Answer 1

631 = 19000(r)(5/12)

 

Can you solve for r?

Answer 2

i=p*r*t

631=19,000*r*(5/12)

631=r*(95,000/12)

(12/95,000)(631)=r*(95,000/12)*(12/95,000)

7572/95,000=r

0.079705=r

r=7.9705%

r=8.0% rounded to one decimal place