Question

Lindsey was charged interest of $161.79 for a loan amount of $3,700.00 that sheborrowed for 140 days. What monthly rate of simple interest was charged on the loan?

Answer 1

interest = loan amount * monthly rate * 140/30

161.79 = 3700 * r * 14/3 (r is the rate)

Then:

r = 161.79*3/(3700*14)

r = 0.00937 = 0.94%