A bank loans 18 dollars comma 900 for 4 years. If the bank collects a total of 24 dollars comma 948 , what was the simple interest rate?

First find the interest paid: $24,948 − $18,900 = $6,048. Using the simple-interest formula I = Prt, the rate is $6,048 ÷ ($18,900 × 4) = 0.08, or 8%. The correct choice is C, 8%.

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