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Simple Interest, SMB-014

Steffi borrowed $8600 to buy a new car.

She did not make any monthly repayments but instead repaid the loan in full 2 years later with a lump sum of $10 062.

Determine the annual simple interest rate that Steffi was charged.   (2 marks)

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

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`8.50\text{%}`

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`text(Total interest paid)=10\ 062-8600=$1462`

`I` `=Prn`
`1462` `=8600 xx r xx 2`
`r` `=1462/(17\ 200)`
  `=0.0850`
  `=8.50\text{%}`

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

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