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What is the annual rate of interest on a $152,400 loan, if the first semiannual interest payment is $10,287? Select one:

a. 11.75%
b. 13.50%
c. 14.25%
d. 15.75%

User Ngw
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1 Answer

4 votes

Final answer:

The annual rate of interest on a $152,400 loan is 6.75%.

Step-by-step explanation:

To find the annual rate of interest, we need to use the formula:

Interest = Principal x Rate x Time

In this case, the principal (loan amount) is $152,400. The interest is $10,287 and the time is 1 year (since it is an annual rate). Plugging these values into the formula, we get:

$10,287 = $152,400 x Rate x 1

To solve for the rate, divide both sides of the equation by $152,400:

Rate = $10,287 / $152,400

Rate = 0.0675

Converting to a percentage, we get:

Rate = 0.0675 x 100% = 6.75%

Therefore, the annual rate of interest on the $152,400 loan is 6.75%.

User Jamespick
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