Answer:
actual rate of interest is 2.08 %
Step-by-step explanation:
Given data
borrowed = $2100
time = 15 months
rate = 2.6%
to find out
interest and receive from the bank and actual rate of interest
solution
we know bank discounted the loan at 2.6%
so interest will be 2.6% of $2100
that is = 2.6/100 × 2100
interest = $54.60
so receive from the bank is borrowed money - interest
receive = 2100 - 54.60
receive from the bank is $2045.40
and we can say that interest is directly proportional to time
so interest of 12 months / interest of 15 month = 12 month time/ 15 month time
here interest of 12 months = 12/15 × interest of 15 month
interest of 12 months = 12/15 × 54.60
interest of 12 months is $43.68 (annually)
now we can calculate actual rate of interest
that is = interest / borrowed money × 100
actual rate of interest = 43.68/2100 × 100
actual rate of interest is 2.08 %
