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Scott took out a 72 month loan for $35,000 to purchase a new boat. If Scott paid $8925 in simple interest, what is the interest rate?

Verified Answer :

apologiabiology

I=PRT
I=Interest
P=principal
R=rate in decimal
T=time in years

1year=12months
72months/12months=6 years
t=6

given
I=8925
P=35000
R=r
T=6


8925=35000r6
8925=210000*r
divide both sides by 210000
0.0425=r

the interest rate is 4.25%

We know, Interest rate = P R T / 100

Here, Interest (I) = 8925
Principle rate (P) = 35,000
Time (T) = 72 months = 72/12 = 6 years
Rate (R) = ?

Substitute their values into the expression:
8925 = 35000 R 6 / 100
R = 8925 100 / 35000 6
R = 892500 / 210000
R = 4.25%

In short, Your Final Answer would be 4.25%

Hope this helps!

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