SOLUTION: An education loan of $8400 for ten years is to be repaid in monthly installments of $122.50. What is the annual of this loan, computed as simple interest?

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Question 459970: An education loan of $8400 for ten years is to be repaid in monthly installments of $122.50. What is the annual of this loan, computed as simple interest?
Answer by rfer(16322) About Me  (Show Source):
You can put this solution on YOUR website!
122.50*120=14700
14700-8400=6300
6300/12=525 per yr
525/8400=0.0625
=6.25% interest per yr