Question

The principal P is borrowed and the loan's future value A at time t is given. Determine the loan's simple interest rate r.

P = $9000.00, A = $9720.00, t = 1 year
% (Round to the nearest tenth of a percent as needed.)
...

Answer 1

Therefore, the loan's simple interest rate is 8.0%

Explanation:

The simple interest rate r can be calculated using the following formula:

```

r = (A - P) / (P * t)

```

where:

* A is the future value of the loan

* P is the principal amount of the loan

* t is the time period in years

Substituting the given values into the formula, we get:

```

r = (9720 - 9000) / (9000 * 1)

```

```

r = 0.08

```

```

r = 8.0% (rounded to the nearest tenth of a percent)

```

Therefore, the loan's simple interest rate is 8.0%