Question

A 90-day simple interest loan in the amount of $2350 will be paid in full in the amount of $2500 . Find the rate of the loan.

Answer 1

Answer:

The rate of simple interest is 25.89 %  

Step-by-step explanation:

Given as :

The principal = $2350

The Amount = $2500

The time period = 90 days = $\frac{90}{365}$ year = 0.2465 year

Let The rate of interest = R %

So, Interest = Amount - Principal

Or, Interest = $2500 - $2350 = $150

From Simple Interest method

Simple Interest = $\frac{Principal\times rate\times Time}{100}$

Or, $150 =  $\frac{ 2350\times rate\times 0.2465 }{100}$

or, $150 × 100 = $579.275  × Rate

So, Rate = $\frac{15000}{579.275}$

∴    Rate = 25.89 %

Hence The rate of simple interest is 25.89 %    Answer