Final answer:
The simple annual interest rate on the loan is approximately 10.57%.
Step-by-step explanation:
To find the simple annual interest rate, we can use the formula:
Interest = Principal × rate × time
In this case, the principal (loan amount) is $525, the interest is $575 - $525 = $50, and the time is 75 days/365 days (approximated to a year). Plugging in these values into the formula:
$50 = $525 × rate × rac{75}{365}
Solving for the interest rate:
rate = rac{50}{525} × rac{365}{75} = 0.1057
To convert it to a percentage, we multiply by 100:
rate ≈ 10.57%