If a business borrows $12,600 and repays $23,940 in 5 years, what is the simple interest rate? ​

18%

General Formulas and Concepts:

Pre-Algebra

Order of Operations: BPEMDAS

Brackets Parenthesis Exponents Multiplication Division Addition Subtraction Left to Right  

Equality Properties

Multiplication Property of Equality Division Property of Equality Addition Property of Equality Subtraction Property of Equality

Algebra I

Simple Interest Rate Formula: A = P(1 + rt)

P is principle amountr is ratet is time

Step-by-step explanation:

Step 1: Define

Identify variables

P = 12600

A = 23940

t = 5

Step 2: Solve for r

Substitute in variables [Simple Interest Rate Formula]:                                 23940 = 12600(1 + 5r)[Division Property of Equality] Divide 12600 on both sides:                         19/10 = 1 + 5r[Subtraction Property of Equality] Subtract 1 on both sides:                         9/10 = 5r[Division Property of Equality] Divide 5 on both sides:                                  9/50 = rRewrite:                                                                                                             r = 9/50Evaluate:                                                                                                           r = 0.18Convert:                                                                                                            r = 18%