Problema Solution
The principal P is borrowed and the loans future value A at time t is given.Determine the loans simple interest rate r to the nearest tenth of a percent. P= $3800.00, A= 3885.50, T= 6 months
Answer provided by our tutors
simple interest I = PRT/100
Interest = A - P = 3885.50 - 3800 = 85.50
R = I/PT = 85.50*100/3800*(6/12)
R = 8550*12/3800*6
R = 4.5%