Betsy borrowed $525 for a new foot stool. She made 6 monthly payments to repay the loan. She paid $35 interest. What is her simple interest rate?
35%
13.3%
6.7%
40%
20%

A simple interest rate is a type of rate that is paid only on the amount borrowed and not on both the amount borrowed and the interest already accrued as it is in a compound interest.

Simple interest rate = interest / (time x principal)

$35 / (6/12 x 525)

= 13.3%

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Betsy borrowed $525 for a new foot stool. She made 6 monthly payments to repay the loan. She paid $35 interest. What is her simple interest rate? 35% 13.3% 6.7% 40% 20%

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What is simple interest rate?

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Betsy borrowed $525 for a new foot stool. She made 6 monthly payments to repay the loan. She paid $35 interest. What is her simple interest rate?
35%
13.3%
6.7%
40%
20%