mr. smith borrowed $24,000 to purchase stock for his baseball card shop. he repaid the simple - interest…

mr. smith borrowed $24,000 to purchase stock for his baseball card shop. he repaid the simple - interest loan after five years. he paid interest of $6,070. what was the interest rate? the interest rate on the loan was . (type an integer or decimal rounded to two decimal places as needed.)

mr. smith borrowed $24,000 to purchase stock for his baseball card shop. he repaid the simple - interest loan after five years. he paid interest of $6,070. what was the interest rate? the interest rate on the loan was . (type an integer or decimal rounded to two decimal places as needed.)

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, and $t$ is the time in years. We know that $I=$6070$, $P = $24000$, and $t = 5$ years. We need to solve for $r$.

Step2: Rearrange the formula to solve for $r$

Starting with $I = Prt$, we can solve for $r$ by dividing both sides of the equation by $Pt$. So, $r=\frac{I}{Pt}$.

Step3: Substitute the given values into the formula

Substitute $I = 6070$, $P = 24000$, and $t = 5$ into the formula $r=\frac{I}{Pt}$. $r=\frac{6070}{24000\times5}=\frac{6070}{120000}$

Step4: Calculate the value of $r$

$r=\frac{6070}{120000}=0.050583\cdots$

Step5: Round the result

Rounding $r$ to two decimal places, we get $r\approx0.05$

Answer:

$0.05$