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Mathematics 10 Online
OpenStudy (anonymous):

Tom borrowed $35,000 to remodel his house. At the end of the 5-year loan, he had repaid a total of $46,375. At what simple interest rate did he borrow the money?

zepdrix (zepdrix):

So if I'm remembering the formula for Simple interest correctly, it's something like this,\[\huge A=Prt\]In this problem, they told us that the Principal amount (P) was 35,000. The amount of Time (t) that had passed was 5 years. And the end amount (A) was 46,375. Plugging these in gives us,\[\huge 46,375=35,000 \cdot r \cdot 5\]From here, we need to solve for r. Make sense so far? :O

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