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Five years ago, Jay borrowed $1500 from his mother. He agreed to pay $150 in interest. What is the simple annual interest rate for this loan?

Respuesta :

SillyGeese

Answer:

It would be 2%

Step-by-step explanation:

Hope this helps! :D

The simple annual interest rate for this loan will be 2%.

What is the definition of simple interest?

Simple interest is extra money paid by the person borrowing the money. The formula for the simple interest is;

[tex]\rm SI = \frac{P \times R \times T}{100}[/tex]

Given data;

P(Principal) =$1500

R(Rate)=?

T)TIme)=5year

SI(Simple interest)=$ 150

The simple interest is calculated as ;

[tex]\rm SI = \frac{P \times R \times T}{100} \\\\ 150 = \frac{1500 \times R \times 5 }{100} \\\\ R=2 \%[/tex]

Hence, the simple annual interest rate for this loan will be 2%.

To learn more about simple interests, refer to;

https://brainly.com/question/14031892

#SPJ2

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