SOLUTION: A radio commercial for a loan company states; "You only pay 26 cents a day for each $500 borrowed." If you borrow $1,289 for 223 days, what amount will you repay, and what annual i

Question 1182563: A radio commercial for a loan company states; "You only pay 26 cents a day for each $500 borrowed." If you borrow $1,289 for 223 days, what amount will you repay, and what annual interest rate is the company actually charging?
Assume a 360 day year, round to two decimal places.
Found 2 solutions by Boreal, MathTherapy:
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
This is 2.578*$0.26*223, the 2.578 being the ratio of $1289 to $500.
=$149.47
I=prt
$149.47=1289*(223/360)*r=$798.46r
r=$149.47/$798.46=18.72%
Answer by MathTherapy(10552) (Show Source): You can put this solution on YOUR website!

A radio commercial for a loan company states; "You only pay 26 cents a day for each $500 borrowed." If you borrow $1,289 for 223 days, what amount will you repay, and what annual interest rate is the company actually charging?
Assume a 360 day year, round to two decimal places.

The interest amount ($0.26), $500 principal, and time (1 day of a 360-day year), are enough to calculate required interest rate.
Being short-term SIMPLE INTEREST, we get:
Interest rate, or
RELATED QUESTIONS
An advertisement for a loan company states that you only pay 13 cents per day for each... (answered by solver91311)
I have trouble answering this simple interest question. A loan company advertises that... (answered by stanbon)
You need to borrow $20,000 to buy a car. You can only afford to make monthly payments of... (answered by jorel555)
You need to borrow $24,000 to buy a car. You can only afford to make monthly payments of... (answered by ewatrrr)
George finds a company that charges 59¢ per day for each $1,000 borrowed. If he... (answered by ikleyn)
You borrow $650,000 from a mortgage company for a 30 year loan at 7.1% interest to... (answered by math_tutor2020)
You borrow $1200 to buy a piano. The simple interest rate is 12%. You pay off the loan... (answered by josmiceli)
What is the interest rate if you pay $12 for interest when you borrow $2000 for a... (answered by stanbon)
I GAVE YOU THE WRONG E-MAIL FIRST THIS IS THE RIGHT ONE CAN YOU PLEASE HELP 1. WHAT (answered by checkley71)