/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Problem 7 If you receive \(\$ 500\) in sim... [FREE SOLUTION] | 91影视

91影视

Log out

Learning Materials

Features

Discover

Chapter 17: Problem 7

If you receive \(\$ 500\) in simple interest on a loan that you made for \(\$ 10,000\) for five years, what was the interest rate you charged?

Short Answer

Expert verified
The interest rate you charged on the loan was \(1\%.\)

Step by step solution

01

Rearrange the simple interest formula to find R

We have Simple Interest = P * R * T. To isolate R, we'll divide both sides of the equation by (P * T): R = Simple Interest / ( P * T)
02

Substitute the given values

Now, we'll substitute the values given in the exercise: R = \(\frac{500}{(10000 * 5)}\)
03

Calculate R

We can now calculate R: R = \(\frac{500}{50000}\) R = 0.01
04

Convert R to percentage

To express the interest rate in percentage form, we'll multiply R by 100: Interest Rate = \(0.01 * 100\) Interest Rate = 1% The interest rate you charged on the loan was 1%.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Name several different kinds of bank account. How are they different?

What are some reasons why the investment strategy of a 30 -year-old might differ from the investment strategy of a 65 -year-old?

Explain how a company can fail when the safeguards that should be in place fail.

How do bank failures cause the economy to go into recession?

Why are banks more willing to lend to well established firms?
See all solutions

Recommended explanations on Economics Textbooks

Taxation Economics

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.