Question

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?

Answer 1

total amount paid = p * i * n
p = principal (original amount borrowed or loaned)
i = interest rate for one period
n = number of periods
46,375 = 35,000*5*x
46,375 = 175000x
46,376/175000 = x
x = .265
times the .265 by 100 = 26.5%

Answer 2

Okay.Thanks.:)