Question

If the lease factor is given as 0.0030, what interest rate is that equivalent to?

Answer 1

The interest rate is 0.30%.

Explanation:

Decimal = 0.0030

The interest rate is out of 100.

So multiply the decimal by 100 and divide by 100 to get the interest rate.

0.0030 * 100

------------------- = 0.30/ 100

100

So the interest rate is 0.30%.

Hope you will understand the concept.

Thank you.

Answer 2

Answer: Interest rate would be 7.2%.

Explanation:

Since we have given that

Least factor = 0.0030

We need to find the interest rate:

To get interest rate from least factor, we need to multiply the least factor with 2400.

so, it becomes,

`0.0030* 2400\\\\=7.2\%`

Hence, Interest rate would be 7.2%.