Post Time: 2025-07-20
Error: No content files found.In this video we discuss the formula for calculating the rate in simple interest, and how to solve for the rate in simple us interest problems. We go through examples when you are given the interest amount, principal amount and the time. Transcript/notes Solving for rate in simple interest The formula for calculating simple interest is interest equals, the principal, times the rate, times the time frame, which can be written as I equals p, times r, times t, or I equals prt. If we want to solve for rate, we can modify this equation by dividing both sides by principal times time, P times T, and we get the formula rate equals, interest divided by principal times time. As an similar internet page example, let’s say that someone borrows $10,000 and pays $3625 in simple interest over 5 years, what was the simple interest rate? Using our formula of rate equals, interest divided by principal times time, the principal, or initial amount borrowed was $10,000, the interest paid is $250, and the time is 5 for 5 years. So, we have rate equals, $3625 divided by $10,000 times 5. $10,000 times 5 is $50,000, and $3625 divided by $50,000 equals .0725, and one Click On this website note, the dollar signs cancel out. We need to convert this decimal to a percent, and to do that we move the decimal 2 places to the right and attach a percent sign to get 7.25%, so the simple interest rate is 7.25%. And here are a couple more examples on the screen for you of how to solve for rate in simple interest problems. Timestamps 0:00 Formula for simple interest 0:12 Formula to solve for rate in simple interest 0:25 Example problem to solve for rate in simple interest 1:19 More example problems