if 480.00 is borrowed for 3years simple intrest became 516. what was it rate?
I got . 2 ½ % as the answer.
I = PRT
36 = 480 * R * 3
36 = 1440R
0.025 = 2.5% interest
To determine the interest rate, we need to use the simple interest formula:
Simple Interest = (Principal * Rate * Time) / 100
Here, the principal amount (P) is $480.00, the time (T) is 3 years, and the simple interest amount (I) is $516.00.
We can rearrange the formula to solve for the rate (R):
Rate = (Simple Interest * 100) / (Principal * Time)
Substituting the given values into the formula, we have:
Rate = (516 * 100) / (480 * 3)
Rate = 51600 / 1440
Rate ≈ 35.83
Therefore, the interest rate is approximately 35.83%.