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Borrowed 600$ from the bank. Interest is $14.25 for 90 days. What is interest rate?

User Criss
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1 Answer

6 votes

Answer:

0.01 %

Explanation:

The interest rate is the percentage of the principal (the amount borrowed) that is charged as interest over a certain period of time.

To find the interest rate, we can use the formula:

Interest Rate = Interest / Principal x Number of days / 365

We know that the principal is 600$, the interest is 14.25$ and the number of days is 90

so we can substitute the values into the formula:

Interest Rate = 14.25 / 600 x 90 / 365

Interest Rate = 0.02375 * 90 / 365

Interest Rate = 0.0104

Rounded to the nearest thousandth, the interest rate is 0.010 or 0.01 %

User Midimatt
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