SOLUTION: Ms. Jordan has been given a loan of $2,500 for 1 year. If the interest charged is $275, what is the interest rate on the loan? HELP, do I have to divide 2500 by 275? Then divide

Algebra ->  Equations -> SOLUTION: Ms. Jordan has been given a loan of $2,500 for 1 year. If the interest charged is $275, what is the interest rate on the loan? HELP, do I have to divide 2500 by 275? Then divide       Log On


   

Question 111656: Ms. Jordan has been given a loan of $2,500 for 1 year. If
the interest charged is $275, what is the interest rate on the loan?
HELP, do I have to divide 2500 by 275? Then divide that by 60?
Answer by BrittanyM(80) About Me  (Show Source):
You can put this solution on YOUR website!
All that we need to do in order to solve this problem is to divide the interest by the amount which was loaned.
275/2500 = 0.11
Which is 11%
We may check this answer by multiplying the total loan by the interest rate. The product will come out to the total interest.
2500 x 0.11 = 275
The interst rate is 11%