Question

You borrow $18,000 to buy a new car. You will pay $3,240 in simple interest at the end of 6 years. What is the annual interest rate on your purchase

Answer 1

Simple interest formula
I=ptr which is interest = principal x time x rate
Your equation will be
3240=18000(6)(r)
You will multiply 18000x6 =108000
Then your equation will be
3240=108000(r) and you will divide 3240/108000= .03 which would be 3%