Question

Jack borrowed $ 4,000.00 and paid $ 585.00

in simple interest after 4 year 6 months. What
was the annual rate of interest?​

Answer 1

3.25%

Explanation:

The formula for simple interest is I = PRT, where I = interest earned/paid, P = principal amount deposited or borrowed, R = rate of interest as a decimal, and T = time in years.

I = PRT

585 = (4000)(r)(4.5)

585 = 18,000r

r = 0.0325

Multiply by 100 to get the percentage

0.0325 = 3.25%