Carcass wrote:

A business owner obtained a $6,000 loan at a simple annual interest rate of r percent in order to purchase a computer. After one year, the owner made a single payment of $6,840 to repay the loan, including the interest. What is the value of r ?

A. 7.0

B. 8.4

C. 12.3

D. 14.0

E. 16.8

We see that $6,840 - 6,000 = $840 is the amount of interest paid, so we can create the equation:

840 = 6000 x r/100

84000 = 6000r

14 = r

Answer: D

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