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20 October, 11:33

The principal "P" is borrowed and the loan's future value "A" at time "t" is given. Determine the loan's simple interest rate "r" to the nearest tenth of a percent. P=2500.00 A=2525.00 T=3 months

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  1. 20 October, 11:46
    0
    2525

    1/3 is the correct answer to your question
  2. 20 October, 11:47
    0
    R=interest rate in %/month.

    t=3 months

    P=2500

    A=2525

    Using

    A=P (1+rt)

    2525=2500 (1+3r)

    Solve for r:

    1+3r=2525/2500=1.01

    3r=0.01

    r=0.01/3 = (1/3) %
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