Question

what rate of interest is paid if the interest on a loan of $2500 is $96.06 from November 14, 2019, to May 20, 2020?

Answer 1

7.46%

Explanation:

The number of days between November 14, 2019, to May 20, 2020, is 188 days.

`\begin{gathered} \text{Interest}=Prin\text{cipal}* Rate* Time \\ 96.06=2500* R*(188)/(365) \\ 96.06=(R*2500*188)/(365) \\ R*2500*188=96.06*365 \\ R=(96.06*365)/(2500*188) \\ R=0.0746 \\ R\approx7.46\% \end{gathered}`

The rate of interest paid on the loan is approximately 7.46%.