Business math word problem

Question

The simple interest charged on a 2 month loan $7,600 is $114. Calculate the rate.

Answer 1

Simple interest can be calculated by using the formula:

I = Prt

I = interest charged

P = principal (loan amount)

r = rate

t = time in years (in this case 2 months out of 12 = 2/12 or 1/6)