Jamerra recieved a $3000 car loan. She plans on paying off the loan in 2 years. At the end of 2 years jamerra woild have laid $450 in interest. What is the simple interest rate on the car loan

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Jamerra recieved a $3000 car loan.
She plans on paying off the loan in 2 years.
At the end of 2 years jamerra would have laid $450 in interest.
Let’s find out the amount of the simple interest rate on the car loan.
Since it is 2 years, and we need to find the annual interest, let’s do the following:
=> 450 / 2 = 225 is the interest she paid in a year
=> 225 / 3 000 dollars = 0.075
=> 0.075 * 100% = 7.5% -> the interest rate that Jamerra paid per year.




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