89,445 views
35 votes
35 votes
You take out a 60- day loan for $5000, at the end of the loan, you owe $73.97 in interest. What is the annual percentage rate? Round your answer to the nearest 10th of a percentRate equals interest/principle X time

User Shealan
by
2.8k points

1 Answer

13 votes
13 votes

To solve the problem we have to use the simple interest formula:


\text{Interest = Initial Money }*\text{ Percentage }*\text{ Time}

In this case, we have to put the time into the year format. Thus,


\text{79.97= 5000 }*\text{ Percentage }*\text{ }(60)/(365)
\text{Percentage = }(79.97)/(5000*(60)/(365))=0.097296

Answer: The annual percentage rate is 9.7%

User Martixy
by
2.3k points