Question

What percentage interest rate is a loan that charges $5,000 in simple annual interest over 5 years on a $5,000 balance?

Answer 1

@iGreen.

Answer 2

I = prt

Plug in what we know:

5000 = (5000)(5)r

What's 5000 * 5?

Answer 3

A. 2%
B. 5%
C. 20%
D. 50%

Answer 4

25000

Answer 5

Yes, so we have:

5000 = 25000r

Now divide 25000 to both sides, what's 5000 / 25000?

Answer 6

0.2 which is 20%

Answer 7

right?

Answer 8

Yep, correct.

Answer 9

Thank you so much!!!