Question

Fiano borrowed $550. Four months later, he sent a cheque for $562.83 to repay the loan and interest. What was the interest rate charged?PLS help I realllyneed it.

Answer 1

Rate = 0.7%

Explanation:

Rate = Interest / (principal x time)

rate = 12.83 / ((550) x 12/4)

rate = 12.83 / (550 x 3)

rate = 12.83 / 1650

rate = 0.007

rate = 0.7%