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Simple Interest, SMB-009 MC

Albert borrowed $2000 off his brother Sid so he could attend the rugby league Magic Round in Brisbane.

He did not make any monthly repayments but instead repaid the loan in full 12 months later with a lump sum of $2350.

What was the annual simple interest rate Sid charged Albert?

  1. 3.5%
  2. 17.5%
  3. 23.5%
  4. 35.0%
Show Answers Only

`B`

Show Worked Solution

`text(Total interest paid)=2350-2000=$350`

`I` `=Prn`
`350` `=2000 xx r xx 1`
`r` `=350/2000`
  `=0.1750`
  `=17.50\text{%}`

 
`=> B`

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

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