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artcher [175]
3 years ago
14

Your bank gives you a special loan of $112,000. At the end of 30 years, you will pay the bank $176,400 in simple interest. What

is the annual interest rate on your loan? Use the formula: I = Prt.
Mathematics
1 answer:
Mandarinka [93]3 years ago
7 0
Find the amount of interest
Interest amount = (176400 - 112000) dollars                           = 64400 dollarsAs per the formula of simple interest we know thatInterest = Principal * Rate of interest * Time Rate of Interest = (Principal * Time)/Interest amount                          = (112000 * 30)/64400                          = 3360000/64400                          = 52.17So the rate of interest on the loan for the period of 30 years was 52.17%
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