Question

Don glover borrowed $14,000 for 250 days and paid $806.20 in simple interest on the loan. what annual simple interest rate did don pay on the loan?​

Answer 1

Simple interest formula = I = PRT where I = interest, P = principal, r = interest rate and t = time.

i = 806.20, p = 14,000 t = 250 days.

Change t to be fraction of a full year: t = 250/365

Now solve for r:

806.20 = 14000 x r x 250/365

Simplify :

806.20 = r x 9589.04

Divide both sides by 9589.04:

r = 806.20 / 9589.04

r = 0.08407

Multiply by 100 to get percent:

r = 8.41% (rounded to nearest hundredth)