Question

what rate of interest is paid if the interest on a loan of $2500 is $96.06 from November 14, 2019, to May 20, 2020?

Answer 1

Answer:

7.46%

Explanation:

The number of days between November 14, 2019, to May 20, 2020, is 188 days.

$\begin{gathered} \text{Interest}=Prin\text{cipal}\times Rate\times Time \\ 96.06=2500\times R\times\frac{188}{365} \\ 96.06=\frac{R\times2500\times188}{365} \\ R\times2500\times188=96.06\times365 \\ R=\frac{96.06\times365}{2500\times188} \\ R=0.0746 \\ R\approx7.46\% \end{gathered}$

The rate of interest paid on the loan is approximately 7.46%.