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

Answer:

7.3%

Step-by-step explanation:

Given:

Formula for Rate of interest $R$:

$R=\dfrac{i}{Pt}$

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:

$R=\dfrac{151.11}{690 \times 3}\\\Rightarrow R=\dfrac{151.11}{2070}\\\Rightarrow R=0.073$

Multiply the above value with 100 to find the percentage.

i.e.

$R=0.073\times 100 = \bold{7.3\%}$

Therefore, the answer is 7.3%