The principal P is borrowed and the loan's future value A at time t is given. Determine the loan's simple interest rate r.
P = $9000.00, A = $9450.00, t = 1 year
To calculate the simple interest rate r, you can use the formula for simple interest:
A = P + Prt
Given:
P = $9000.00
A = $9450.00
t = 1 year
Substitute the values into the formula and solve for r:
9450 = 9000 + 9000r(1)
9450 = 9000 + 9000r
450 = 9000r
r = 450 / 9000
r = 0.05
Therefore, the simple interest rate for the loan is 0.05 or 5%.