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28 February, 15:38

Jackie decided to open a restaurant. She borrowed $25,000.00 for 5 years. After 5 years, she had paid back $35,000.00. What was her simple interest rate?

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  1. 28 February, 15:42
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    The answer is 8%

    Explanation:

    Remember the formula of simple interes is

    Total Interest = Amount (Capital) x interest rate x time

    in this case

    (35.000-25.000) = 25.000 x i x 5 years

    10.000/25.000 / 5 = i

    0,08 = i

    8% = i
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