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Moira borrowed \(4,500 from her grandfather to pay for her first year of college. Three years later, she repaid the \)4,500 plus $243 interest. What was the rate of interest?

Short Answer

Expert verified

The rate of interest was is 1.8%.

Step by step solution

01

Step 1. Given information

Principal=$4500TimePeriod=3yearsInterestearned=$243

02

Step 2. Calculation

P=4500T=3S.I.=243Therefore,SI=P×R×T1003×r×4500100=243=1.8%

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