Hi,
By definition, interest rate is the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.
To find interest rate you need the principle, interest earned, and time.
Solve for Rate (R)
Where: r = I / Pt
I = 837 (dollars)
P = 3100 (dollars)
t = 6 (years)
r = 837 / ( 3100 × 6 ) = 0.045
r = 0.045
*converting r decimal to a percentage
R = 0.045 * 100 = 4.5%/year*
The interest rate required to accumulate simple interest of $ 837.00 from a principal of $ 3,100.00 over 6 years is 4.5% per year.
In short, rate: 4.5% / year
Faith xoxo
