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LenKa [72]
3 years ago
5

A loan company charges $80 interest for a three-month loan of $550. Find the annual interest rate (APR) they are charging.

Mathematics
1 answer:
german3 years ago
4 0

Answer:

Step-by-step explanation:

using the simple interst formula;

SI = Principal * Rtae * Time/100

Given

Principal = $550

SI = $80

Time = 3 month = 3/12 years

Required

Annual interest rate

Substitute

80 = 550 * R * 3/12*100

80 = 1650R/1200

96000 = 1650R

R = 1650/96000

R = 0.017

Rate = 0.017 * 100 = 1.7%

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