zaeemcgs
Answered

Welcome to Westonci.ca, the ultimate question and answer platform. Get expert answers to your questions quickly and accurately. Discover solutions to your questions from experienced professionals across multiple fields on our comprehensive Q&A platform. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

A man borrows $500 and agrees to repay $750 at the end of 4 years. What is the rate of simple interest charged?

Sagot :

altavistard

Answer:

The rate of simple interest is 0.125, or 12.5%.

Step-by-step explanation:

If the man must repay $750 after 4 years on a $500 loan, the simple interest would be ($750-$500), or $250.

The simple interest formula is i = p*r*t.  Solving this for the interest rate, r, yields

        i

r = ----------

       p*t

and so, with i = $250, p = $500 and t = 4 yr, we find r as follows:

         $250

r = ----------------- = 0.125

         $500*4

The rate of simple interest is 0.125, or 12.5%.

Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.