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A loan of $3880 is taken out an annual interest rate of 67.5%. Simple interest is charged. How much will the loan cost to pay off after 23 days?

I = Prt ​

User Hestellezg
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1 Answer

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Answer:

$4,045.09

Explanation:

Interest formula is I = Prt/100

where P = principal

r = interest rate (in percent)

t = number of time periods

Here we have P = 3880

interest = 67.5% per year.
First convert this to interest rate to a daily interest rate
67.5% per year = 67.5 /365 = 0.185 (assuming 365 days a year)

r = 0.185% per day

t = 23 days

I = 3880 x 0.185 x 23 /100 = $165.09

Total amount to pay back = 3880 + 165.09 = $4,045.09

User Jonathan Eunice
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