kaylee obtains a loan with simple interest to buy a car that costs \$8,500. if kaylee pays \$1,020 in interest during the four-year term of the loan, what was the rate of simple interest?

$0.03\%$
$3\%$
$8.3\%$
$12\%$

Question

kaylee obtains a loan with simple interest to buy a car that costs \$8,500. if kaylee pays \$1,020 in interest during the four-year term of the loan, what was the rate of simple interest?

$0.03\%$
$3\%$
$8.3\%$
$12\%$

Accepted Answer

{ "quality": "clear", "question_count": 1, "skills_matched": [ "step_cot", "multiple_choice_formatter", "explain_then_answer", "quick" ], "needs_drawing": false, "concepts_used": [ "Linear Equations", "Real-world Applications" ], "new_concepts": [ "Simple Interest" ], "current_concepts": [ "Simple Interest", "Linear Equations", "Real-world Applications" ] } ## Identify the given values and formula $$ \begin{aligned} &I = \$1,020 \ &P = \$8,500 \ &t = 4 \text{ years} \ &I = P \cdot r \cdot t \end{aligned} $$ ## Solve for the interest rate $r$ $$ \begin{aligned} &1,020 = 8,500 \cdot r \cdot 4 \ &1,020 = 34,000 \cdot r \ &r = \frac{1,020}{34,000} \ &r = 0.03 \end{aligned} $$ ## Convert the decimal to a percentage $$ \begin{aligned} &r = 0.03 \times 100\% \ &r = 3\% \end{aligned} $$

(A) 0.03%

(B) 3%

(C) 8.3%

(D) 12%

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

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QUESTION IMAGE

Question

Explanation:

Identify the given values and formula

Solve for the interest rate \(r\)

Convert the decimal to a percentage

Answer: