Question

Joakim took out an SMS loan for a month. The loan was SEK 3,000 and he paid SEK 150 in interest. "The interest rate was only 5%" Joakim thought he was right? Motivate your answer.

Answer 1

To determine if Joakim was correct with his calculation with interest, we will compare it with our calculation.

His loan was SEK 3000, with an interest of SEK 150

Divide the interest by the amount of loan.

150 ÷ 3000 = 0.05

Multiply by 100% to get the interest in percentage

0.05 × 100% = 5%.

We can conclude that Joakim was right about his calculation that the monthly interest is only 5%.