Question

Megan took out a student loan for $9,075 if she paid $4.537.50 in simple interest over 10 years what percent was her interest rate

Answer 1

5%

Explanation:

Solving our equation

r = 4537.5 / ( 9075 × 10 ) = 0.05

r = 0.05

converting r decimal to a percentage

R = 0.05 * 100 = 5%/year

The interest rate required to

accumulate simple interest of $ 4,537.50

from a principal of $ 9,075.00

over 10 years is 5% per year.