Question

Novelties-and-Such borrowed 51.100 for 125 days and paid $24.49 in interest. Find the rate of interest on the loan. Round to the nearest tenth.

Answer 1

The rate of interest will be "139.94 %".

Explanation:

The given values are:

Principal money borrowed, P = 51.100

Time, T = 125 days i.e., T = 125/369

Interest, I = $24.49

As we know,

`I=(P* R* T)/(100)`

On putting the values in the above formula, we get

⇒
`24.49=(51.100* R* (125)/(365))/(100)`

On applying cross-multiplication, we get

⇒
`2449=51.100* R* (125)/(365)`

⇒
`(2449* 365)/(51.100* 125)=R`

⇒
`(893885)/(6387.5)=R`

⇒
`139.94 \ percent=R`

Note: percent = %