Question

The expression I/pt represents the rate of interest being charged if a loan of P dollars for T years in the interest to be paid. Find the rate if a $520 loan for 3 years to buy a used personal computer requires $96.72 in interest to b paid

Answer 1

I = PRT
I/PT = R

I = 96.72
P = 520
T = 3

now we sub
I/PT = R
96.72 / (520)(3) = R
96.72 / 1560 = R
0.062.....turn to a percent by multiplying by 100 = 6.2% = R