SOLUTION: Michael lend Farhan for $4800 for 7 months. at the end of this period Farhan has to pay Michael an interest of $119. what was the simple interest rate per annum
Algebra.Com
Question 1129957: Michael lend Farhan for $4800 for 7 months. at the end of this period Farhan has to pay Michael an interest of $119. what was the simple interest rate per annum
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
simple interest formula is i = p * r * n
i is the interest.
p is the principal.
r is the interest rate per time period.
n is the number of time periods.
in your problem:
p = 4800
n = 7 months
i = 119.
the formula becomes 119 = 4800 * r * 7
solve for r to get r = 119 / (7 * 4800)
you get r = .0035416667.
that's the interest rate per month.
multiply by 12 to get r = .0425.
that's the interest rate per year.
multiply that by 100 to get annual percent rate (apr) = 4.25%.
RELATED QUESTIONS
Andrew lent roger 4800 for 7 months at the end of this period roger had to pay andrew an... (answered by rfer)
The sum of the ages of Farhan and his cousin is 38. Seven years ago, Farhan was thrice... (answered by Fombitz)
the sum of the ages of farhan and his cousin is 38. seven years ago, farhan was thrice... (answered by josgarithmetic)
Farhan orders one plate of seafood fried rice at a restaurant which offers at 25%... (answered by josmiceli)
Rita wants to buy a new car but needs money for the down payment. Her parents agree to... (answered by stanbon)
If I borrow $10,000 for a period of 7 months and have to repay the lender $11,000 at the... (answered by hafie)
Anne borrows $1000 and agrees to pay $100 plus 1% interest if 1% on the unpaid balance... (answered by edjones)
Anne borrows $4000 and agrees to pay $500 plus interest of 2% on the (answered by Theo)
Lisa wants to buy a new boat but needs money for the down payment. Her parents agree to... (answered by Boreal)