Concept explainers
To find: the simple interest rate for her loan.
Answer to Problem 5CYU
The simple interest rate is 0.0323 or 3.23%.
Explanation of Solution
Given information:
M’s sister paid off her student loan of $5000 I 3 years. If she made a payment of $152.5 given month.
Calculation:
You will use the formula
First find the amount of interest she will pay
The principal $5000. So
Hence, the simple interest rate is 0.0323 or 3.23%.
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