Question

loans jean loans bernie $1500. bernie agrees to pay jean an extra $225 when he repays the loan in one year. what is the annual simple interest rate of the loan? %

Explanation:

Step1: Recall simple interest formula

The simple interest formula is $I = P \times r \times t$, where $I$ is interest, $P$ is principal, $r$ is annual rate, $t$ is time in years.

Step2: Identify given values

$I = \$225$, $P = \$1500$, $t = 1$ year

Step3: Rearrange to solve for $r$

$r = \frac{I}{P \times t}$

Step4: Substitute values and calculate

$r = \frac{225}{1500 \times 1} = 0.15$
Convert decimal to percentage: $0.15 \times 100 = 15$

Answer:

15%