Jamerra received a $3,000 car loan. She plans on paying off the loan in 2 years. At the end of 2 years, Jamerra will have paid $450 in interest. What

texelaare

texelaare

Answered question

2021-06-24

Jamerra received a $3,000 car loan. She plans on paying off the loan in 2 years. At the end of 2 years, Jamerra will have paid $450 in interest. What is the simple interest rate on the car loan?

Answer & Explanation

Jaylen Fountain

Jaylen Fountain

Skilled2021-06-26Added 169 answers

Solution in the video below:

Jeffrey Jordon

Jeffrey Jordon

Expert2021-09-29Added 2605 answers

Use the simple interest formula:

I=Prt

where I is the interest, P is the principal, r is then rate in decimal, and t is the time in years.

Substitute $450, P=$3,000, and t=2

450=3000(r)(2)

450=6000r

4506000=r

r=0.0757.5%

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