Donna has a $300 loan through the bank she is charged a simple rate The total interest she paid on the loan was $63 As a percent

Question

1 year ago

13

age what was the annual interest rate on her loan

1 answer:

klasskru [66] · Answer 1 · 2024-01-03T14:04:41+03:00

The annual interest rate is 21%

<h3>How to determine the annual interest rate?</h3>

The given parameters are

Loan Amount, P = $300

Interest, I = $63

Number of years, T = 1

The annual interest rate is calculated as

I = PRT

Substitute the known values in the above equation

63 = 300 * R * 1

Evaluate the product

300R = 63

Divide through by 300

R = 21%

Hence, the annual interest rate is 21%