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Anni [7]
3 years ago
6

What is the rate of interest on a loan of $2,000, for 284 days, if the amount of interest is $93.37, using the exact interest me

thod? (Round your answer to the nearest tenth percent) a. 14.5% b. 5.9% c. 6.0% d. 4.7%
Mathematics
1 answer:
Viefleur [7K]3 years ago
3 0

Answer: Option (c) is correct. Rate of interest = 6% p.a.

Step-by-step explanation:

Given that,

principal amount = $2000(loan)

time period =  284 days

interest amount (SI) = $93.37

we have to calculate the rate of interest (i),

Simple interest(SI) = principal amount × rate of interest (i) × time period

93.37 = 2000 × i × \frac{284}{365}

i = \frac{34080.05}{568000}

i = 0.06

i = 6%

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