if the simple interest of $38,000 in three years is $5700 what is the rate?
I = Prt
5,700 = 38,000 * 3r
0.15 = 3r
0.05 = r
rate = 5%
Thank you Ms. Sue for your help. Can you please explain to me from here 0.15 came from? really appreciate it.
5700 / 38,000 = 0.15
You're welcome.
To find the rate, we can use the formula for simple interest:
Simple Interest = (Principal * Rate * Time) / 100
In this case, the principal amount is $38,000 and the simple interest is $5,700. The time is given as three years. We want to find the rate.
We can rearrange the formula to solve for the rate:
Rate = (Simple Interest * 100) / (Principal * Time)
Substituting the given values, we have:
Rate = (5700 * 100) / (38000 * 3)
Rate = 1900 / 114000
Rate = 0.0167 (rounded to four decimal places)
To convert this to a percentage, multiply by 100:
Rate = 0.0167 * 100
Rate = 1.67%
Therefore, the rate is 1.67%.