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2 February, 10:05

Solve a word problem involving simple interest

Question

David borrowed $30,000 to start a business. Four years later, he repaid the $30,000 along with an interest of $1,260. What

was the annual interest rate? Round to two decimal places.

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Answers (2)
  1. 2 February, 10:18
    0
    Answer: 1.05%

    Step-by-step explanation:

    Principal = $30000

    Time = 4 years

    Rate = Unknown

    Interest = 1260

    Simple interest = PRT/100

    1260 = (30000*R*4) / 100

    Cross multiply

    1260*100 = 120000R

    126000=120000R

    Divide both side by 120000

    R = 126000/120000

    R = 1.05%
  2. 2 February, 10:23
    0
    1.05% do I need to show work?
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