question 17

you need to borrow \$18,000 to buy a new car. you are willing to pay \$4,000 in interest over the life of the loan, and you want to repay the loan in 3 years.

what simple interest rate do you need to meet your goal?

13.63%
22.22%
10.45%
7.41%

Question

question 17

you need to borrow \$18,000 to buy a new car. you are willing to pay \$4,000 in interest over the life of the loan, and you want to repay the loan in 3 years.

what simple interest rate do you need to meet your goal?

13.63%
22.22%
10.45%
7.41%

Accepted Answer

{ "quality": "clear", "question_count": 1, "skills_matched": [ "step_cot", "multiple_choice_formatter", "explain_then_answer", "tutor", "mastery_adaptive_brevity" ], "needs_drawing": false, "concepts_used": [ "Simple Interest Formula", "Decimal to Percent Conversion" ], "new_concepts": [], "current_concepts": [ "Simple Interest Formula", "Decimal to Percent Conversion" ] } ## Identify given values Using the *Simple Interest Formula* knowledge point $$ \begin{aligned} P &= \$18,000 \quad \text{(Principal)} \ I &= \$4,000 \quad \text{(Interest)} \ t &= 3 \quad \text{(Time in years)} \end{aligned} $$ ## Solve for interest rate Using the *Simple Interest Formula* knowledge point $$ \begin{aligned} I &= P \cdot r \cdot t \ 4000 &= 18000 \cdot r \cdot 3 \ 4000 &= 54000 \cdot r \ r &= \frac{4000}{54000} = \frac{4}{54} \approx 0.074074 \end{aligned} $$ ## Convert to percentage Using the *Decimal to Percent Conversion* knowledge point $$ \begin{aligned} r \times 100\% &\approx 0.074074 \times 100\% \ &\approx 7.41\% \end{aligned} $$

(A) 13.63%

(B) 22.22%

(C) 10.45%

(D) 7.41%

{ "subject": "Mathematics", "question_type": "Multiple Choice", "knowledge_point": [ "Mathematics", "Algebra", "Simple Interest Formula" ] }

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QUESTION IMAGE

Question

Explanation:

Identify given values

Solve for interest rate

Convert to percentage

Answer: