SmarterEd

Aussie Maths & Science Teachers: Save your time with SmarterEd

  • Login
  • Get Help
  • About

Simple Interest, SMB-015

Carissa borrowed $4000 to buy new surfboards.

She did not make any monthly repayments and repaid the loan in full 2 years later with a lump sum of $4400.

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

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

Show Answers Only

`5.0\text{%}`

Show Worked Solution

`text(Total interest paid)=4400-4000=$400`

`I` `=Prn`
`400` `=4000 xx r xx 2`
`r` `=400/8000`
  `=0.05`
  `=5.0\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