Question

Silky smooth linens takes out a loan of $2,500, for 314 days. if the amount of interest is $83.29, use the exact interest method to find the rate. (round to nearest tenth percent)

Answer 1

I = Prt
83.29 = 2500r(314/365) . . . . . substituting given values
r = 83.29*365/(2500*314) ≈ 3.8727%

The interest rate is about 3.9%.