Question

Khalil Hamid Ali borrowed $12,000 and paid $1,890 in exact interest when the loan came due 11 to 2 years later. What rate of interest did Khalil pay?

Answer 1

The rate of interest that Khalil Hamid Ali paid for borrowing $12,000 and paying $1,890 as interest expense for 1.5 years is 10.5%.

Data and Calculations:

Amount borrowed = $12,000

Interest paid = $1,890

Time period = 1.5 years

Rate of interest = 10.5% ($1,890/$12,000 x 1/1.5)

Thus, the rate of interest that Khalil Hamid Ali paid for borrowing $12,000 and paying $1,890 as interest expense for 1.5 years is 10.5%.

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