Solve a word problem involving simple interest

Question

David borrowed $30,000 to start a business. Four years later, he repaid the $30,000 along with an interest of $1,260. What

was the annual interest rate? Round to two decimal places.

Question

Mathematics

Guest

25 June, 00:05

Solve a word problem involving simple interest

Question

David borrowed $30,000 to start a business. Four years later, he repaid the $30,000 along with an interest of $1,260. What

was the annual interest rate? Round to two decimal places.

+3

Answers (2)

Know the Answer?

Fatima Raymond · Answer 1

Fatima Raymond 25 June, 00:21

0

1.05% do I need to show work?

Tucker Morales · Answer 2

Answer: 1.05%

Step-by-step explanation:

Principal = $30000

Time = 4 years

Rate = Unknown

Interest = 1260

Simple interest = PRT/100

1260 = (30000*R*4) / 100

Cross multiply

1260*100 = 120000R

126000=120000R

Divide both side by 120000

R = 126000/120000

R = 1.05%

Solve a word problem involving simple interestQuestionDavid borrowed $30,000 to start a business. Four years later, he repaid the $30,000 along with an interest of $1,260. Whatwas the annual interest rate? Round to two decimal places.

Solve a word problem involving simple interest

Question

David borrowed $30,000 to start a business. Four years later, he repaid the $30,000 along with an interest of $1,260. What

was the annual interest rate? Round to two decimal places.