Question

A loan company charges $30 interest for a one month loan of $500. Fine the annual interest rate they are charging.

Answer 1

`\begin{gathered} Let\text{ Annual interest rate be represented by: R} \\ \text{from I = }\frac{\text{PRT}}{100} \\ I\text{ = \$30} \\ P\text{ = \$500} \\ R\text{ = ?} \\ \text{T = 1} \\ \\ R\text{ = }(100I)/(PT)\text{ = }\frac{100\text{ }*30}{500*1}\text{ = }(3000)/(500)\text{ = }(3000)/(500)\text{ = 6}^{}\text{\%} \end{gathered}`