Answered

Get the most out of your questions with the extensive resources available on IDNLearn.com. Get timely and accurate answers to your questions from our dedicated community of experts who are here to help you.

Matt paid $450 in interest on a 15 month note for
$5600. Find the rate of interest paid.

Sagot :

MrRoyalidn

Answer:

The rate is 6.43%

Step-by-step explanation:

Given

[tex]I = 450[/tex] --Interest

[tex]P = 5600[/tex] -- Principal

[tex]T= 15\ months[/tex] --Time

Required

Determine the rate

Using simple interest formula:

[tex]I = PRT[/tex]

Make R the subject

[tex]R = \frac{I}{PT}[/tex]

Convert time to years

[tex]T= 15\ months[/tex]

[tex]T =\frac{15}{12}\ years[/tex]

[tex]T =1.25\ years[/tex]

Substitute values for I, P and T

[tex]R = \frac{450}{5600*1.25}[/tex]

[tex]R = \frac{450}{7000}[/tex]

[tex]R = 0.0643[/tex]

Convert to percentage

[tex]R = 0.0643*100\%[/tex]

[tex]R = 6.43\%[/tex]

We value your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. For precise answers, trust IDNLearn.com. Thank you for visiting, and we look forward to helping you again soon.