## If a business borrows $12,600 and repays$23,940 in 5 years, what is the simple interest rate? ​

Question

If a business borrows $12,600 and repays$23,940 in 5 years, what is the simple interest rate? ​

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6 months 2021-07-26T12:58:36+00:00 1 Answers 4 views 0

## Answers ( )

18%

General Formulas and Concepts:

Pre-Algebra

Order of Operations: BPEMDAS

1. Brackets
2. Parenthesis
3. Exponents
4. Multiplication
5. Division
7. Subtraction
• Left to Right

Equality Properties

• Multiplication Property of Equality
• Division Property of Equality
• Addition Property of Equality
• Subtraction Property of Equality

Algebra I

Simple Interest Rate Formula: A = P(1 + rt)

• P is principle amount
• r is rate
• t is time

Step-by-step explanation:

Step 1: Define

Identify variables

P = 12600

A = 23940

t = 5

Step 2: Solve for r

1. Substitute in variables [Simple Interest Rate Formula]:                                 23940 = 12600(1 + 5r)
2. [Division Property of Equality] Divide 12600 on both sides:                         19/10 = 1 + 5r
3. [Subtraction Property of Equality] Subtract 1 on both sides:                         9/10 = 5r
4. [Division Property of Equality] Divide 5 on both sides:                                  9/50 = r
5. Rewrite:                                                                                                             r = 9/50
6. Evaluate:                                                                                                           r = 0.18
7. Convert:                                                                                                            r = 18%