SmarterEd

Aussie Maths & Science Teachers: Save your time with SmarterEd

  • Login
  • Get Help
  • About

Simple Interest, SMB-008

Sandy borrowed $7 000 for an overseas trip.

She did not make any monthly repayments but instead repaid the loan in full at the end of three years with a lump sum of $8800.

Calculate the annual simple interest rate was she charged?   (2 marks)

--- 4 WORK AREA LINES (style=lined) ---

Show Answers Only

`8.57\text{%}`

Show Worked Solution

`text(Total interest paid)=8800-7000=$1800`

`I` `=Prn`
`1800` `=7000 xx r xx 3`
`r` `=1800/(21\ 000)`
  `=0.08571…`
  `=8.57\text{%}`

Filed Under: Simple Interest Tagged With: num-title-ct-corea, smc-4332-20-Find interest rate

Copyright © 2014–2025 SmarterEd.com.au · Log in