Question

Mario borrows $4800 for 8.5 years at a fixed rate of simple interest. At the end of that time, he owes $8000. What interest rate is he being charged?

Answer 1

nterest = principal(rate)(time)
He paid $8000-4800 - $3200 in interest
3200 = 4800(rate)(8.5)
3200 = 40,800r
0.078431372 or about 7.84%

Answer 2

Base Capital borrowed(C) = $4800
Time period for which the loan exists(n): 8.5 years
Let the Rate of Interest(%) be= r (which is to be calculated)
The Final amount(F=Base amount with interest) he woes after 8.5 years is $8000

So Total Interest (I) he paid= Final amount(F)-Base amount(C)= $8000-$4800= $3200

As per Formula of simple Interest
total Interest(I) =C*r*n/100 => I = $4800* r * 8.5 /100= $3200

=> r = ($3200*100) / ($4800*8.5) = 7.84%

So rate of Interest = 7.84% per annum.

Answer 3

I = Prt
r = I/Pr = 3200/(4800)(8.5) = 7.8%

Answer 4

hope this helps u

Answer 5

ok thanks a lot

Answer 6

yeah np

Answer 7

I have a question like for the formula I= Prt by u divide

Answer 8

I = Prt
r = I/Pr = 3200/(4800)(8.5) = 7.8%

Answer 9

https://answers.yahoo.com/question/index?qid=20090531123720AAn1MrJ look here this might help u lil