## 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?

in progress
0

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

Answer: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%