Final answer:
Using the simple interest formula, the annual rate of interest on the loan is found to be about 9.93%.
Step-by-step explanation:
To determine the annual rate of interest on a loan, you can use the formula for simple interest, which is Interest = Principal × rate × time. In this case, the interest is $98, the principal is $8,000, and the time is 45 days out of a 365-day year.
The formula can be rearranged to solve for the rate:
rate = Interest / (Principal × time)
Substituting in the given values:
rate = $98 / ($8,000 × (45/365))
rate = $98 / $986.301
Now, calculating the rate:
rate = 0.0993 (or 9.93% approximately)
The annual rate of interest for this loan is therefore about 9.93%.