Question

5. Enter the answer as a decimal

Calculate the rate of interest, when simple interest = $5,616;
loan amount = $7,200 and time = 12 years.

Answer 1

6.5%

Explanation:

I = prt

5616 = 7200 × r × 12

r = 5616/(7200 × 12)

r = 0.065

r = 6.5%