Question

The expression i/pt represents the rate of instrest being charged if a loan of p dollars for t years required i dollars in intrest to be paid find the intrest rate if a $690 loan for 3 years to buy a used personal computer requiers $151.11 in intrest to be paid

Answer 1

7.3%

Explanation:

Given:

Formula for Rate of interest
`R`:

`R=(i)/(Pt)`

Where
`i` is the rate of interest.

`P` dollars is the loan and

`t` years is the time for which interest is to be paid

`P =\$690\\t=3\ years\\i=\$151.11`

To find:

`R=?`

Solution:

Putting the given values in the formula:

`R=(151.11)/(690 * 3)\\\Rightarrow R=(151.11)/(2070)\\\Rightarrow R=0.073`

Multiply the above value with 100 to find the percentage.

i.e.

`R=0.073* 100 = \bold{7.3\%}`

Therefore, the answer is 7.3%