Question

April took out a $600 loan from the bank. At the end of 5 years, she pays back the principal, plus $60 simple interest What was the annual interest rate?

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1. Given:

- Principal (P) =600

- Time (T) =5 years

- Simple Interest (SI) =60

2. Formula for Simple Interest:

SI = P \times R \times T

3. Rearrange the formula to solve for the annual interest rate (R):

R = \frac{SI}{P \times T}

4. Substitute the given values:

R = \frac{60}{600 \times 5} = \frac{60}{3000} = 0.02

5. Convert to percentage:

R = 0.02 \times 100 = 2\%

Answer:2\%

- Principal (P) =

- Time (T) =

- Simple Interest (SI) =

2. Formula for Simple Interest:

3. Rearrange the formula to solve for the annual interest rate (R):

4. Substitute the given values:

5. Convert to percentage:

Answer:

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