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10 June, 12:30

What is the interest rate if the amount borrowed is $11,000 for 6 years and the interest paid is $1800?

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  1. 10 June, 12:45
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    The formula for simple interest is ...

    I = Prt

    1800 = 11000*r*6

    1800/66000 = r = 0.02727 ... (repeating 27)

    The simple interest rate is approximately 2.73%.
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