Final answer:
The interest rate on the loan was approximately 11.4%.
Step-by-step explanation:
To calculate the interest rate, we can use the formula:
Interest = Principal x Rate x Time
Given that the person paid $220 in interest on a $8000 loan for 90 days, we can substitute these values into the formula:
220 = 8000 x Rate x 90/365
Cross multiplying and solving for the rate, we get:
Rate = 220 x 365/(8000 x 90)
Rate ≈ 0.114 or 11.4%
Therefore, the interest rate on the loan was approximately 11.4%.