Question

You take out a 60-day loan for $4800At the end of the loan , you owe $63.12 in interest What is the annual percentage rate? Round your answer to the nearest tenth of a percent

Answer 1

Step-by-step explanation

The simple interest is given by the formula below;

`S.I=(PRT)/(100)`

Where

`\begin{gathered} P=4800\text{ dollars} \\ R=? \\ I=63.12\text{ dollars} \\ T=60days=(60)/(365)years \end{gathered}`

Therefore, we will have;

`\begin{gathered} 63.12=(4800* r*60)/(100*365) \\ switch\text{ sides} \\ (4800r* \:60)/(100* \:365)=63.12 \\ 4800r*\:60=63.12*100*365 \\ 288000r=2303880 \\ r=(2303880)/(288000)\approx8.0 \end{gathered}`

Answer: 8.0 percent