The principal P is borrowed and the​ loan's future value A at time t is given. Determine the​ loan's simple interest rate r to the nearest tenth of a percent.

Question

The principal P is borrowed and the​ loan's future value A at time t is given. Determine the​ loan's simple interest rate r to the nearest tenth of a percent.

P​ = ​$3400.00​, A​ = ​$3472.25​, t​ = 3 months

ANSWER: _________​% ​(Round to the nearest tenth of a​ percent.)

Answer 1

Hi Christian B

You want Simple Interest Rate r as in

I = Prt

I/Pt = r

At A after 3 months

A = 3472.25

P= 3400

t = 3 months = 3/12 = .25 yrs

I = A- P = 3472.25 - 3400 = 72.25

r = 72.25/(3400*.25) = .085

r = .085

r = 8.5%

I hope this answers your question