A small business owner is calculating the annual interest rate they are paying on a simple interest loan used to purchase new office equipment. They already know the total interest paid ($I$), the principal amount ($P$), and the time in years ($t$). Which of the following formulas correctly isolates the rate ($r$) to allow them to solve the problem?

A freelance contractor borrowed {}3{,}000 to purchase a professional software suite. The loan was repaid over ${}4$ years with a total of ${}660$ in simple interest. To calculate the annual interest rate using the formula $I = Prt$, match each component of this business scenario with its corresponding variable.

Loren lent his brother 3,000 to help with a car purchase. After 4 years, the brother paid back the principal plus 660 in simple interest. Arrange the following steps in the correct order to solve for the annual rate of simple interest ($r$) using the formula $I = Prt$.

In the simple interest formula $I = Prt$, the interest rate ($r$) must be expressed in decimal form rather than percentage form when performing the calculation.

A corporate accountant is calculating the annual simple interest rate on a loan of 5,000 dollars used for facility repairs. Over 4 years, the loan accrued 800 dollars in interest. Following the standard problem-solving strategy, the accountant substitutes these values into the formula $I = Prt$ to get ${}800 = (5{,}000)r(4)$. To solve for the interest rate $r$, the next step is to multiply the principal and the time, and then divide both sides of the equation by ____.

Identifying Variables for Simple Interest in a Business Loan

Training Guide: Verifying the Annual Simple Interest Rate on Micro-Loans