Question

suppose you borrow $1000 for 3 years and you owe $200 interest. what is the interest rate?

Answer 1

Answer:

6.67%

Step-by-step explanation:

By question I borrow $1000 for 3 years and I owe $200 interest . We can use the formula of Simple Interest as ,

$\implies SI =\dfrac{ P*R*T}{100}$

• Plug in the values .

$\implies \ 200 =\dfrac{3*\ 1000*R }{100}\\\\\implies R = \dfrac{ \ 200 * 100}{3*\ 1000} \\\\\implies\underline{\underline{ R = 6.67 \%}}$