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

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.