The rate of interest is 75 % per year
Solution:
Given that, Jamerra received a $3,00 car loan
she plans on paying off the loan in 2 years
Jamerra will have paid $450 in interest
Therefore, we get
Principal = $ 300
Number of years = 2
Simple Interest = $ 450
Rate of interest = ?
The simple interest is given by formula:
[tex]simple\ Interest = \frac{p \times n \times r}{100}[/tex]
Where,
"p" is the principal and "n" is the number of years and "r" is the rate of Interest
Substituting the given values we get,
[tex]450 = \frac{300 \times 2 \times r}{100}\\\\450 = 3 \times 2 \times r\\\\6r = 450\\\\r = \frac{450}{6}\\\\r = 75[/tex]
Thus rate of interest is 75 % per year
