SOLUTION: Suppose you pay back $510 on a $500 loan. You had the loan for 45 days. What was your simple annual interest rate?

Question 1063253: Suppose you pay back $510 on a $500 loan. You had the loan for 45 days. What was your simple annual interest rate?
Found 2 solutions by ankor@dixie-net.com, MathTherapy:
Answer by ankor@dixie-net.com(22740) (Show Source): You can put this solution on YOUR website!
Suppose you pay back $510 on a $500 loan.
You had the loan for 45 days.
What was your simple annual interest rate?
:
You paid $10 in interest
= .02; 2% for 45 days
Find the annual rate
* 2 = 16.2%
Answer by MathTherapy(10552) (Show Source): You can put this solution on YOUR website!
Suppose you pay back $510 on a $500 loan. You had the loan for 45 days. What was your simple annual interest rate?

SI = PTR
Note that number of days used for these types of calculations is 360, not 365 like most people think

500R = 80 ------- Cross-multiplying
R, or annual interest rate is:
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