Ask Question
5 October, 17:27

Moira borrowed $4,500 from her grandfather to pay for her first year of college. Three years later, she repaid the $4,500 a long with an interes of $143. What was the annual interes rate?

+5
Answers (1)
  1. 5 October, 17:42
    0
    Answer: The annual interest rate is 1.06%

    Step-by-step explanation: This is a simple interest computation.

    The formular for a simple interest is given as;

    I = (P * R * T) / 100

    Where I represents the interest paid,

    P represents Principal borrowed at the beginning

    R represents the rate at which the interest is calculated

    T represents the Time measured in number of years

    If the interest is calculated as I = (P*R*T) / 100, we should first of all make R the subject of the formular;

    Multiply both sides by 100

    100I = P*R*T

    Divide both sides of the equation by P and T

    (100I) / (P * T) = R

    Now we can insert the values into the rearranged formular

    (100 * 143) / (4500 * 3) = R

    14,300/13,500 = R

    143/135 = R

    1.0592592593 = R

    Therefore, R which is the rate of interest equals approximately 1.06%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Moira borrowed $4,500 from her grandfather to pay for her first year of college. Three years later, she repaid the $4,500 a long with an ...” in 📗 Mathematics if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers