Answered

Get the answers you need at Westonci.ca, where our expert community is dedicated to providing you with accurate information. Discover precise answers to your questions from a wide range of experts on our user-friendly Q&A platform. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.

David borrowed $30,000 to start a business. Four years later he repaid $1260 in interest. What was the annual rate? Round to two decimal places.

Sagot :

kirabowen15
Annual rate = 1.05%

Simple interest formula is I = Prt * 100
Where P is principle, I is interest, r is rate and t is time.

Transpose to make r the subject

Prt * 100 = I
r = I/ Pt * 100

Substitute values into the equation.
Let I = $1260, P = $30,000 and t = 4 years

r = $1260/ $30,000 * 4 * 100
r = 0.0105 * 100
r = 1.05%
We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.