If bank wished to earn $6,300 on a loan over twelve months, what interest rate would the bank have to charge?
That depends upon the size of the loan.
Oops, I left out the loan amount. It's a $50,000 loan.
I = PRT
6300 = 50,000 * R
6300/50,000 = R
0.126 = 12.6% = R
To calculate the interest rate required for a loan, we can use the formula for simple interest:
Interest = Principal × Rate × Time
In this case, we have the following information:
Interest = $6,300
Time = 12 months
Let's assume the Principal amount is P (the amount of the loan). We need to find the interest rate (Rate).
Using the formula, we can manipulate it to solve for the rate:
Rate = Interest / (Principal × Time)
Since the Principal amount is not given, we cannot calculate the exact interest rate without that information. Could you please provide the Principal amount of the loan?