Glen received $2,250 loan from bank. After six months, he paid back $2,295 and closed the loan. Find the rate of interest

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keshavgandhi04 keshavgandhi04 · Answer 2 · 2021-12-11T08:01:35+01:00

The rate of interest is 4% and this can be determined by using the formula of simple interest.

Given :

Glen received a $2,250 loan from the bank.
After six months, he paid back $2,295 and closed the loan.

The formula of simple interest can be used in order to determine the rate of interest. The formula of simple interest is given by:

A = P(1 + rt)

where A is the final amount, r is the rate of interest, t is the time period in year and P is the principal amount.

Now, substitute the values of all the known terms in the above formula.

2295 = 2250(1 + 0.5r)

Simplify the above expression in order to determine the value of 'r'.

2295 = 2250 + 1125r

45 = 1125r

r = 0.04

r = 4%

The rate of interest is 4% and this can be determined by using the formula of simple interest.

For more information, refer to the link given below:

https://brainly.com/question/2793278