Question

If you take out a loan for $4,000 and you will owe $4,920 after 2 years, what is the rate of simple interest? Express your answer as a percentage rounded to the nearest tenth of a percent if necessary, but do not include the percent sign.

Answer 1

11.5

Explanation:

you have to use this equation to solve it [r = (1/t)(A/P - 1)] and basically just plug the numbers in to get 11.5. (you could also use one of those online calculators)

r = (1/2)((4920/4000) - 1) = 0.115

r = 0.115

Answer 2

11.5

Explanation: