math

posted by .

What percentage interest rate is a loan that charges one hundred dollars in simple annual interest over 5 years on a one thousand dollar balance?

  • math -

    I = PRT

    100 = 1,000 * R * 5

    100 = 5,000R

    100/5,000 = R

    0.02 = R

    Rate = 2%

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Math (Word Problem)

    Imagine that you have just taken out a loan for one year for $4,500. What would be the simple interest on this loan if the annual percentage rate were 6.5%?
  2. Finance

    Sauerfood company has decided to buy a new computer system with an expected life of 3 yrs. the cost is 150,000.the comapny can borrow $150,000 for 3yrs at 10% annual interest or for one yr at 8% annual interest. How much wld sauer …
  3. anonymous

    1.) an account invested in a month market fund grew from $67,081.20 to $67,359.39 in a month. What was the interest rate, to the nearest tenth?
  4. eco

    Suppose a person pays $80 of annual interest on a loan that has a 5 percent annual interest rate. The loan amount is: A. $400. B. $1,600. C. $160. D. $85. 10. Suppose a loan customer is considering two alternative $22,000 loans. Loan …
  5. Finance

    Five years ago, you bought a house for $151,000. You had a down payment of $30,000, which meant you took out a loan for $121,000. Your interest rate was $5.75% fixed. You would like to pay more on your loan. You check your bank statement …
  6. Math Finance please help

    Five years ago, you bought a house for $151,000. You had a down payment of $30,000, which meant you took out a loan for $121,000. Your interest rate was $5.75% fixed. You would like to pay more on your loan. You check your bank statement …
  7. VBA Programming

    I'm trying to create a macro that asks for a loan between 1 dollar and 5 million, and returns different interest rates based on the amount of the loan. For some reason when I type in different loan amounts it automatically makes my …
  8. Financial maths year 9

    Sophie borrowed $2000 at a simple interest rate of 15% for 3 years to repay the loan and has $900 in interest. If Sophie's interest was calculated at the same rate on the balance owing, how much would she have owed after 6 months if …
  9. Maths

    Sophie borrowed $2000 at a simple interest rate of 15% for 3 years to repay the loan and has $900 in interest. If Sophie's interest was calculated at the same rate on the balance owing, how much would she have owed after 6 months if …
  10. math

    An investment club placed $36,000 into two simple interest accounts. On one account, the annual simple interest rate is 8.5%. On the other, the annual simple interest rate is 3.5%. How much should be invested in each account so that …

More Similar Questions