## A loan worth $1000 collects simple interest each year for 6 years. At the end of that time, a total of$1270 is paid back. Determine the per

Question

A loan worth $1000 collects simple interest each year for 6 years. At the end of that time, a total of$1270 is paid back. Determine the percentage rate for this loan?

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1 week 2021-07-22T23:39:15+00:00 1 Answers 7 views 0

The percentage rate is 4.5%

Step-by-step explanation:

The simple interest earned in this situation is $1270 –$1000, or $270. the simple interest formula is i =prt. Here, i =$270 = ($1000)(r)(6 yr).$270

Then r = ——————- = 0.045

\$1000(6 yr)

The percentage rate is 4.5%