In the scenario where Jim lent his sister {}5,000 for ${}3$ years and received ${}900$ in simple interest, match each component of the simple interest formula ($I = Prt$) with its corresponding value or description from the problem.

Jim lent his sister 5,000 dollars to help her buy a house. In 3 years, she paid him back the principal plus 900 dollars in interest. To calculate the annual simple interest rate ($r$) Jim charged using the formula $I = Prt$, place the following steps of the problem-solving strategy in the correct order.

Jim lent his sister 5,000 dollars to help her buy a house. In 3 years, she paid him the 5,000 dollars plus 900 dollars in simple interest. Based on this scenario, what was the annual rate of simple interest ($r$) that Jim charged?

In the simple interest formula $I = Prt$, the principal ($P$) for Jim's loan represents the total amount his sister returned to him (the initial loan plus the interest), which equals {}5,900.

Recalling the Final Interest Rate

Jim lent his sister {}5{,}000 for ${}3$ years, and she paid him back with ${}900$ in interest. After using the simple interest formula $I = Prt$ to set up the equation ${}900 = (5{,}000)r(3)$ and solving for $r$, the decimal answer is {}0.06. Expressed as a percentage, Jim's rate of simple interest was ____ %.

Advising on Jim's Loan Simple Interest Calculation