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The total simple interest owed on a loan of $8,000 after 60 months is $1,280.
What is the yearly interest rate on the loan? Show your work.

Respuesta :

abidemiokin

Simple interest is an interest added on an amount of money. The yearly interest rate is 1.05%

Simple interest

Simple interest is an interest added on an amount of money. The formula for calculating amount is given as:

Amount. = Principal + Interest

8000 = 1280 + PRT

Substitute

8000 - 1280 = 1280(R)(5)
6720 = 6400R
R = 1.05

Hence the yearly interest rate is 1.05%

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