The simple interest charged on a five-month loan of 5700 is 456.70. What is the simple interest rate?

Question

The simple interest charged on a five-month loan of 5700 is 456.70. What is the simple interest rate?

Answer 1

the underlying formula that you want to use here is

r = I / (P x t)

for this set of values that means taking

r = 456.70 / (5700 x 5/12)

r = 456.70 / 2375

r = 0.1923 x 100% = 19.23%

so the simple interest rate on the loan is 19.23%

Answer 2

Good afternoon, Bri!

For simple interest, we use this formula: I=Prt. I=interest, P=principal amount, r=rate, t=time.

So, let's plug in the values that we know: 456.70=(5700)r(5). Now, we simply solve for r.

5700 times 5 = 28,500. Now we have 456.70=28500r.  Divide by 28500 on both sides; this gives us .01602456=r.

So, the rate is 1.602456%.

 

Hope this helps!