A vet borrows $12,000 for 4 years. The total interest paid was $960. What was the interest rate on the loan?

Question

A vet borrows $12,000 for 4 years. The total interest paid was $960. What was the interest rate on the loan?

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Kiệt Gia 1 month 2021-07-31T11:23:43+00:00 1 Answers 1 views 0

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    2021-07-31T11:24:49+00:00

    Answer:

    2% per year.

    Step-by-step explanation:

    Solving our equation

    r = 960 / ( 12000 × 4 ) = 0.02

    r = 0.02

    converting r decimal to a percentage

    R = 0.02 * 100 = 2%/year

    The interest rate required to

    accumulate simple interest of $ 960.00

    from a principal of $ 12,000.00

    over 4 years is 2% per year.

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