Samantha asked for a loan from the bank of 4,500 plans to repay it in 4 years Samantha will have to repay it 900 of interest what is the simple interest rate

Correct answer: r = 5%

Step-by-step explanation:

Given:

L = 4,500 Loan

t = 4 years time to repay

I = 900 Interest

r = ? simple interest rate

The formula for calculating simple interest is:

I = (L · r · t) / 100

r = (I · 100) / L · t

r = (900 · 100) / 4,500 · 4 = 90,000 / 18,000 = 5 %

r = 5 %

God is with you!

5

Step-by-step explanation:

S. I is defined mathematically as

[P x R xT]/100

P - Principal amount borrowed

R - the rate

T - time duration

S. I - simple interest [in this case 900]

S. I = [4500 x R x 4]/100

900 = [4500 x R x 4]/100

900x100 = 4500 x 4 x R

[900 x 100]/[4500 x 4] = R [by changing the subject of the formula to reflect R on the right side; you divide both sides by 4500 x 4]

90000/18000 = 5

5=R

Rate = 5%