mr. smith borrowed $26,000 to purchase stock for his baseball card shop. he repaid the simple - interest…

mr. smith borrowed $26,000 to purchase stock for his baseball card shop. he repaid the simple - interest loan after three years. he paid interest of $6,210. 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 $26,000 to purchase stock for his baseball card shop. he repaid the simple - interest loan after three years. he paid interest of $6,210. 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 interest rate, and $t$ is the time in years. We need to solve for $r$. Rearranging the formula gives $r=\frac{I}{Pt}$.

Step2: Identify the values of $I$, $P$, and $t$

We know that $I = 6210$, $P=26000$, and $t = 3$.

Step3: Substitute the values into the formula for $r$

$r=\frac{6210}{26000\times3}$. First, calculate the denominator: $26000\times3=78000$. Then, $r=\frac{6210}{78000}=0.079615$.

Step4: Round the result

Rounding $0.079615$ to two decimal places, we get $r = 0.08$.

Answer:

$0.08$