Question

A plumber has a car payment of $250 per month. $225 of which goes to paying off the principal, and the rest goes towards the interest. What percent is being payed for interest

Answer 1

Rate=R%=11.1111%

Step-by-step explanation:

Given,

Amount=A=$250 (per month)

Principal=P=$225 (per month)

Interest=A-P=$250-$225=$25 (per month)

Time=1 month

Rate=R%=?

S.I=P×R%×T/100

25=225×R%×1/100

25×100/225=R%

R%=100/3

R%=11.1111%