Question

Mary borrows $5,000 dollars from her mother at a 3% simple interest rate and pays her $600 in interest after t years.

What is the value of t?
2
3
4
5

Answer 1

4

Explanation:

The simple interest per year is 3% times $5000 which is 150 dollars.

Now, we have the equation 150x = 600.

We solve and get x = 4