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Sagot :
SOLUTION:
Step 1:
In this question, we are given the following:
Tyler borrowed $600. After one year, he paid the whole loan back, with a total maturity value of $640. What was the interest rate of the loan?
Step 2:
The details of the solution are as follows:
[tex]\begin{gathered} Principal\text{ = \$ 600} \\ Amount\text{ = \$ 640} \\ Interest\text{ = Amount - Principal = \$ 640 - \$ 600 = \$ 40} \end{gathered}[/tex][tex]Using\text{ Simple Interest = }\frac{Principal\text{ x Rate x Time}}{100}[/tex][tex]Then,\text{ we have that the Rate = }\frac{100\text{ x Simple Interest }}{Principal\text{ x Time}}[/tex][tex]\begin{gathered} where\text{ Simple Interest = \$ 40 ,} \\ Time\text{ = 1 year} \\ Principal\text{ = \$ 600} \end{gathered}[/tex][tex]Rate\text{ =}\frac{100\text{ x 40}}{600\text{ x 1}}=\frac{4000}{600}=\text{ 6}\frac{2}{3}\text{ \%}[/tex]CONCLUSION:
The interest rate on the loan =
[tex]6\text{ }\frac{2}{3}\text{ \%}[/tex]
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