April took out a 600 loan from the bank. At the end of 5 years, she pays back the principal, plus 60 simple interest.What was the annual interest rate?

Solution

Solution

Rate : 2%

Solution steps

Translate the problem into an equation:

60 = 600 r \cdot 5

Solve for

r, 60 = 600 r \cdot 5 : r = 2%

Rate : 2%

Popular Examples

Suppose you invest 3,500 in a savings account that earns 7% interest, compounded quarterly. How much money would you have after 6 years? Round your answer to the nearest penny one half the sum of a number and three is the same as negative six After sailing 18 mi, a sailor changed direction and increased the boat's speed by 4 mph. An additional 13 mi was sailed at the increased speed. The total sailing time was 3 h. Find the rate of the boat for the first 18 mi.The sum of a number and 5 is 1 If the sum of the smallest and largest of three consecutive even numbers is 28, what is the value of the second largest number in the series?