SOLUTION: If you paid $40 to a loan company for the use of $1,483 for 76 ​days, what annual rate of interest did they​ charge? (Assume a​ 360-day year. Round to three decimal plac

Algebra ->  Finance -> SOLUTION: If you paid $40 to a loan company for the use of $1,483 for 76 ​days, what annual rate of interest did they​ charge? (Assume a​ 360-day year. Round to three decimal plac      Log On


   

Question 1182562: If you paid $40 to a loan company for the use of $1,483 for 76 ​days, what annual rate of interest did they​ charge? (Assume a​ 360-day year.

Round to three decimal places.
Answer by ikleyn(52781) About Me  (Show Source):
You can put this solution on YOUR website!
.

You write equation for the simple interest  I = Prt  as you read the problem


    40 = 1483*r*(76/360),


where "r" is the unknown rate.  From the equation


    r = %2840%2A360%29%2F%281483%2A76%29 = 0.1278   (rounded).


So, the annual simple interest rate is  12.78%.     ANSWER

Solved.

----------------

To see many other similar  (and different)  solved problems on simple interest accounts,  look into the lesson
    - Simple interest percentage problems
in this site.


Learn the subject from there.