Question

Anton borrowed $460 for a new bicycle. He made 9 monthly payments to repay the loan. He paid $60 interest. What is his simple interest rate?

13.0%
7.67%
9.75%
10.2%
17.4%

Answer 1

17.4% per annum

Explanation:

calculate the amount that he would have paid in 12months,. if 9months=60 what about 12months,then take 80/460multiply by100%=17.4

Answer 2

17.4%

Explanation:

I = Prt

r = I/(Pt) = 60/(460·(9/12)) = 0.1739 ≈ 17.4%

Anton's interest rate was 17.4%.