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The problem involves calculating the simple interest rate on a car loan.

Here is the information given:
- Principal (P): \$5,000
- Interest (I): \$300
- Time (T): 18 months (which is 1.5 years)

We can use the formula for simple interest:
\[
I = P \times r \times T
\]
Where:
- $ I $ is the interest (\$300),
- $ P $ is the principal (\$5,000),
- $ r $ is the interest rate (which we need to find),
- $ T $ is the time in years (1.5 years).

Rearranging the formula to solve for the interest rate $ r $:
\[
r = \frac{I}{P \times T}
\]

Now we can calculate the rate.

Let me calculate it for you.The simple interest rate on the loan is **4%**.

Would you like more details on the solution or have any other questions?

Here are some related questions for further practice:
1. How would the interest change if the loan period were extended to 24 months?
2. What would the total interest be if the loan amount were \$6,000 instead?
3. How much would Phil owe if the interest rate were 5% instead of 4%?
4. What would the interest rate be if the interest paid was \$400 over the same period?
5. How would compound interest affect the amount paid if it were used instead?

**Tip:** Always convert months to years when using the simple interest formula.

Phil took out a car loan for $5,000. At the end of 18 months, he had repaid the loan amount and an additional $300 in interest. What was the simple interest rate on the loan?

Learn how to calculate the simple interest rate for a $5,000 car loan repaid over 18 months with an additional $300 in interest. Understand the basic algebra behind the simple interest formula. Suitable for students in Grades 9-10.

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