The rate of simple interest for loan was 8%
Step-by-step explanation:
Given
Principal amount = p = $6200
Time = t = 1 year
Amount after interest = $6696
We have to calculate the amount of interest first
So,
Interest amount =I= Amount after interest - principal amount
= 6696-6200
=$496
The formula for simple interest is:
[tex]I =prt\\Here\\r\ is\ rate\\p\ is\ principal amount\\t\ is\ timePutting\ the\ values\\496=6200*r*1\\r=\frac{496}{6200}\\r=0.08\\r=0.08*100\\r=8\%[/tex]
The rate of simple interest for loan was 8%
Keywords: Simple interest, percentage
Learn more about simple interest at:
- brainly.com/question/846474
- brainly.com/question/833559
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