You borrow $18,000 to buy a new car. You will pay $3,240 in simple interest at the end of 6 years. What is the annual interest rate on your purchase

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asked Jan 1, 2018 232k views

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Chrmue · Answer 1 · 2018-01-08T05:23:57+0000

Simple interest formula
I=ptr which is interest = principal x time x rate
Your equation will be
3240=18000(6)(r)
You will multiply 18000x6 =108000
Then your equation will be
3240=108000(r) and you will divide 3240/108000= .03 which would be 3%

You borrow $18,000 to buy a new car. You will pay $3,240 in simple interest at the end of 6 years. What is the annual interest rate on your purchase

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