Question

Please help!!If the simple interest on $7,000 for 4 years is $1,960, then what is the interest rate?

Answer 1

Use the formula for the simple interest

`I=p\cdot r\cdot t`

I= interest

p= initial deposit

r=rate

t= time

clear the equation for r

`(I)/(p\cdot t)=r`

replace data in the formula

`\begin{gathered} (1960)/(7000\cdot4)=r \\ (1960)/(28000)=r \\ 0.07=r \end{gathered}`

pass the decimal to percentage

7%

the interest rate is 7%