i understand how to do simple interest i just don't understand this question. how are you soppused to find the interest rate?
i understand how to do simple interest i just don't understand this question. how are you soppused to find the interest rate?
At simple interest is $1,200 over 6 years or $200.00 per year. $200.00 divided by $5,000 is 2/50, 1/25 or 4%
From the simple interest equation, I=PRT, you're solving for R. The answer will be in decimal form. Multiply by 100 to get the percent interest. First though, I is not the total amount you have after 6 years ($6200) but the amount you earned ($1200).
1200 = 5000 * R * 6
1200 = 30000 * R
R = 0.04 or 4%