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April took out a $600 loan from the bank. At the end of 5 years, she pays back the principal, plus $60 simple interest. What was the interest rate? Enter your answer in the box.

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mathjohndough

April took out a loan of $600 and paid it back with simple interest of $60 after 5 years. The formula to calculate interest is [tex]I[/tex] given the principal [tex]P[/tex] and the time [tex]t[/tex]  and the interest rate [tex]r[/tex] is [tex]I=Prt[/tex]. For this problem we have to find the interest rate [tex]r[/tex]  given  [tex]P=600, I = 60,t=5[/tex]. To archive that , we can just solve the equation making the interest rate the subject of the formula as shown below,

[tex]I=Prt\\=>r=\frac{I}{Pt} \\\\=>r=\frac{60}{600\times5} =\frac{1}{50}.[/tex]

The interest rate is [tex]\frac{1}{50}[/tex] or 0.02 as a decimal. The interest rate is 2% as a percentage.

ankitprmr2

Simple interest is the product of the principal amount, rate, and time that is divided by 100. Thus, the rate of interest is 2 %.

April took out a $600 loan from the bank.

At the end of 5 years, she pays back the principal, plus $60 simple interest.

Therefore,

Principal Amount (p)= $600

Rate (r) = x % (Assumption)

Time (t) = 5 years

Simple Interest (I) = $60

The formula for finding the simple interest is given below:

[tex]\begin{aligned}I&=\dfrac{p \times r \times t}{100}\\60&=\dfrac{600 \times x \times 5}{100}\\x&=2 \;\% \end{aligned}[/tex]

Thus, the rate of interest is 2 %.

To know more about the simple interest, please refer to the link:

https://brainly.com/question/20014745