Question

Oridinary interest method to find the rate of interest that make over photo pays on a loan of $8,000 for 285 days. If the amount of interest is $590.

Answer 1

The correct answer is "9.3%".

Explanation:

The given values are:

Amount of interest,

= $590

Principle,

= $8,000

Time:

= 285

Let the interest rate will be "x".

Now,

⇒
`Amount \ of \ interest=Principle* Interest \ rate* (time)/(No. \ of \ days \ in \ year)`

On substituting the values, we get

⇒
`590=8000* x* (285)/(360)`

⇒
`590=6333.33* x`

⇒
`x=(590)/(6333.33)`

⇒
`=9.3157 \ percent`

or,

⇒
`=9.3`%