To find the rate, you need to have the equation for r.
Using the simple interest formula:
I = P • r • t
Divide both sides by P•t to isolate r:
I / P • t = (P • r • t)/ P • t
I / P • t = r
Now that we have the formula for r, substitute the given values into the equation:
r = $141.60/($590 • 6)
r = 0.04 or 4%
Therefore, the interest rate is 4%
