Use a formula to solve the problem. To start a mobile dog-grooming service, a woman borrowed \( \$ 2,500 \). If the loan was for 2 years and the amount of interest was \( \$ 240 \), what simple interest rate was she charged? SUBMIT ANSWER

To find the simple interest rate, you can use the formula: \[ I = P \times r \times t \] where \( I \) is the interest earned, \( P \) is the principal amount (the initial loan), \( r \) is the interest rate (in decimal form), and \( t \) is the time in years. We need to isolate \( r \): \[ r = \frac{I}{P \times t} \] Plugging in the values: \[ I = 240, \quad P = 2500, \quad t = 2 \] Now, substituting these into the formula: \[ r = \frac{240}{2500 \times 2} = \frac{240}{5000} = 0.048 \] To convert the decimal to a percentage, multiply by 100: \[ r = 0.048 \times 100 = 4.8\% \] So, the simple interest rate charged was **4.8%**.