Mr. Sun borrowed $15,600 for 54 months at simple interest to pay for a new swimming pool. If Mr. Sun paid the bank a total of $21,567.00, what was the simple interest rate of the loan?

Given:

Mr. Sun borrowed $15,600 for 54 months at simple interest.

Mr. Sun paid the bank a total of $21,567.00.

To find:

The rate of simple interest.

Solution:

We know that,

12 months = 1 year

1 month = year

54 months = year

54 months = 4.5 years

Simple interest is:

Formula for simple interest is:

Where, P is principal, r is the rate of interest in percent and t is the number of years.

Putting , we get

Therefore, the rate of simple interest is 8.5%.

step-by-step explanation:

sry but any answer choices

answer: its the third option.

step-by-step explanation:

i just took the test.