Answer:
At a rate of 5%.
Step-by-step explanation:
This is a simple interest problem.
The simple interest formula is given by:
[tex]E = P*I*t[/tex]
In which E is the amount of interest earned, P is the principal(the initial amount of money), I is the interest rate(yearly, as a decimal) and t is the time.
In this question:
Payment plan for $1500 means that [tex]P = 1500[/tex]
$450 interest after 6 years means that [tex]E = 450, t = 6[/tex]
We have to find the rate I. So
[tex]E = P*I*t[/tex]
[tex]450 = 1500*I*6[/tex]
[tex]I = \frac{450}{1500*6}[/tex]
[tex]I = 0.05[/tex]
At a rate of 5%.
