Question

A 90-day simple interest loan in the amount of $2350 will be paid in full in the amount of $2500 . Find the rate of the loan.

Answer 1

The rate of simple interest is 25.89 %

Explanation:

Given as :

The principal = $2350

The Amount = $2500

The time period = 90 days =
`(90)/(365)` year = 0.2465 year

Let The rate of interest = R %

So, Interest = Amount - Principal

Or, Interest = $2500 - $2350 = $150

From Simple Interest method

Simple Interest =
`(Principal* rate* Time)/(100)`

Or, $150 =
`($2350* rate* 0.2465 )/(100)`

or, $150 × 100 = $579.275 × Rate

So, Rate =
`(15000)/(579.275)`

∴ Rate = 25.89 %

Hence The rate of simple interest is 25.89 % Answer