SOLUTION: Ms. Jordan has been given a loan of $2500 for 1 year. If the interest charged is $275, what is the interest rate on the loan?

Algebra ->  Algebra  -> Customizable Word Problem Solvers  -> Finance -> SOLUTION: Ms. Jordan has been given a loan of $2500 for 1 year. If the interest charged is $275, what is the interest rate on the loan?      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com
Ad: Algebra Solved!™: algebra software solves algebra homework problems with step-by-step help!
Ad: Algebrator™ solves your algebra problems and provides step-by-step explanations!

   

Question 59218: Ms. Jordan has been given a loan of $2500 for 1 year. If the interest charged is $275, what is the interest rate on the loan?
Answer by funmath(2873) About Me  (Show Source):
You can put this solution on YOUR website!
Ms. Jordan has been given a loan of $2500 for 1 year. If the interest charged is $275, what is the interest rate on the loan?
The formula for simple interest is:highlight%28I=Prt%29, where I=interest, P=principle, r=rate, t=time.
For this problem:
P=2500
t=1
I=275
275=%282500%29%2Ar%2A%281%29
275=2500r
275%2F2500=2500r%2F2500
.11=r
If they ask for the answer in percentage multiply this by 100%.
r=.11%28100%29%
r=11%
Happy Calculating!!!