assume that all interest is simple interest. fred started a new e - commerce business and borrowed $12,900…

assume that all interest is simple interest. fred started a new e - commerce business and borrowed $12,900 for 13 years to get the business up and running. the interest is $6708. find the rate. round to two decimal places, if necessary. the interest rate for freds loan is %.

assume that all interest is simple interest. fred started a new e - commerce business and borrowed $12,900 for 13 years to get the business up and running. the interest is $6708. find the rate. round to two decimal places, if necessary. the interest rate for freds loan is %.

Answer

Explanation:

Step1: Recall the simple - interest formula

The simple - interest formula is $I = Prt$, where $I$ is the interest, $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. We need to solve for $r$.

Step2: Rearrange the formula for $r$

From $I = Prt$, we can isolate $r$ by dividing both sides of the equation by $Pt$. So, $r=\frac{I}{Pt}$.

Step3: Identify the values of $I$, $P$, and $t$

We are given that $I = 6708$, $P=12900$, and $t = 13$.

Step4: Substitute the values into the formula for $r$

$r=\frac{6708}{12900\times13}$. First, calculate the denominator: $12900\times13 = 167700$. Then, calculate $r$: $r=\frac{6708}{167700}=0.04$.

Step5: Convert $r$ from decimal to percentage

To convert a decimal to a percentage, we multiply by 100. So, $r = 0.04\times100 = 4.00%$.

Answer:

$4.00$