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GalinKa [24]
3 years ago
6

Loan Amount: $13,000 Method of payment: discount basis Amount of Interest: $625 Term of loan: 1 year Effective Rate of Interest

(to the nearest tenth) = _____. 4.8 5.1 20.8 57.7
Mathematics
1 answer:
Gekata [30.6K]3 years ago
3 0
<span>Loan Amount: $13,000
Method of payment: discount basis
Amount of Interest: $625
</span><span> Term of loan: 1 year
</span>
∴ Rate if interest = \frac{Amount \ of \ Interest}{Loan \ Amount} *100
Rate =  \frac{625}{13,000} *100 = \framebox {4.8 \%}

So, the correct answer is option (1) 4.8
<span />
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