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 
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