Chapter 3: Q. 3.41 (page 327)

Jim loaned his sister $ $5, 000$ to help her buy a house. In $3$ years, she paid him the $ $5, 000$ , plus $ $900$ interest. What was the rate of interest?

Short Answer

Expert verified

If Jim loaned his sister $ $5000$ to help her buy a house. In $3$ years, she paid him the $ $5000$ , plus $ $900$ interest then the rate of interest was $6 % .$

Step by step solution

Step 1. Given information

principal $P = $ 5000$

Simple Interest $I = $ 900$

Time $t = 3$

Step 2. Interest rate

Consider the interest rate is r

Substitute principal, simple interest, and time in Simple interest formula

$I = P r t 900 = (5000) (r) (3) 900 = 15000 r \frac{900}{15000} = r 0.06 = r r = 6 %$

So the interest rate was $6 %$

Step 3. Verification

With an interest rate of $6$ % and a time of $3$ years, $ $900$ is the simple interest of the principal

$I = P r t 900 = P (0.06) (3) 900 = 0.18 P \frac{900}{0.18} = P 5000 = P$

So $ $900$ is a simple interest of principal $ $5000$ with an interest rate of $6$ % for a time of $3$ years.

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Jim loaned his sister \( $5, 000$ to help her buy a house. In $3$ years, she paid him the \) $5, 000$ , plus $ $900$ interest. What was the rate of interest?

Short Answer

Step by step solution

Step 1. Given information

Step 2. Interest rate

Step 3. Verification

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Jim loaned his sister \(5,000to help her buy a house. In 3years, she paid him the \)5,000, plus $900interest. What was the rate of interest?

Short Answer

Step by step solution

Step 1. Given information

Step 2. Interest rate

Step 3. Verification

One App. One Place for Learning.

Most popular questions from this chapter

Recommended explanations on Math Textbooks

Pure Maths

Statistics

Discrete Mathematics

Mechanics Maths

Theoretical and Mathematical Physics

Probability and Statistics

Study anywhere. Anytime. Across all devices.

Jim loaned his sister \( $5, 000$ to help her buy a house. In $3$ years, she paid him the \) $5, 000$ , plus $ $900$ interest. What was the rate of interest?