SOLUTION: Suppose you pay back $620 on a $600 loan. You had the loan for 75 days. What was your simple annual interest rate?

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Question 1181742: Suppose you pay back $620 on a $600 loan. You had the loan for 75 days. What was your simple annual interest rate?
Found 2 solutions by ikleyn, ankor@dixie-net.com:
Answer by ikleyn(52925) About Me  (Show Source):
You can put this solution on YOUR website!
.


Accepting that the year is 365 days, the simple annual interest rate is  


    %28620-600%29%2F%28600%2A%2875%2F365%29%29 = 20%2F%28600%2A%2815%2F73%29%29 = 1%2F%2830%2A%2815%2F73%29%29 = 73%2F%2830%2A15%29 = 73%2F450 = 0.1622 = 16.22%  (rounded).    ANSWER

Solved.



Answer by ankor@dixie-net.com(22740) About Me  (Show Source):
You can put this solution on YOUR website!
Suppose you pay back $620 on a $600 loan. You had the loan for 75 days.
What was your simple annual interest rate?
Using I = Prt formula, where
I = 620-600 = $20
P = 600
t = 75%2F365 yr
r = annual interest rate
:
600 *75%2F360*r= 20
123.2876r = 20
r = 20%2F123.2876
r = .1622 or 16.22% interest