Interest Rate Literal Equation

[John.]

Can you please help me, I am so lost.

For a particular loan principal of $5,000$5,000, the amount of simple interest you pay after 3 years is $300$300. Explain how you can use the simple interest literal equation to calculate the interest rate, r, for this loan.

 

[Deleted member 4993]

Can you please help me, I am so lost.

For a particular loan principal of $5,000$5,000, the amount of simple interest you pay after 3 years is $300$300. Explain how you can use the simple interest literal equation to calculate the interest rate, r, for this loan.

Can you please state the " simple interest literal equation"?

 

[apostos11]

Simple Interest

Principal= $5,000
Time=3 years
Interest=$300
Rate=r

I=PRT

300=5000*r*3
300=15000*r

300/15000=r
.02=r
or 2%

Rate is 2%

 

[Denis]

Can you please help me, I am so lost.

For a particular loan principal of $5,000, the amount of simple interest
you pay after 3 years is $300.
Explain how you can use the simple interest literal equation to calculate
the interest rate, r, for this loan.

IF the rate is fully simple (no compounding),
then the annual interest = $100 ; understand?
So 5000(1 + r) = 5100

WHY are you "so lost"? Poor math teacher?

As Mr.Khan asked: what is the "simple interest literal equation"?

 

[Dr.Peterson]

Can you please help me, I am so lost.

For a particular loan principal of $5,000, the amount of simple interest you pay after 3 years is $300. Explain how you can use the simple interest literal equation to calculate the interest rate, r, for this loan.

I suppose the equation referred to is something like "i = prt". You know three of the numbers; solve for the other.