SOLUTION: Ms. Jordan has been given a loan of $2500 for 1 year. If the interest charged is $275, what is the interest rate on the loan?

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Question 59428This question is from textbook
: Ms. Jordan has been given a loan of $2500 for 1 year. If the interest charged is $275, what is the interest rate on the loan? This question is from textbook

Found 2 solutions by uma, funmath:
Answer by uma(370) About Me  (Show Source):
You can put this solution on YOUR website!
Loan amount = $2500
Time = 1 year
Interest = $275
Rate of interest = (100*interest)/ (Loan * time)
= (100* 275)/ 2500
= 27500/2500
= 11
The interest rate = 11%

Answer by funmath(2933) About Me  (Show Source):
You can put this solution on YOUR website!
Ms. Jordan has been given a loan of $2500 for 1 year. If the interest charged is $275, what is the interest rate on the loan?
:
The formula for simple interest is: highlight%28I=Prt%29, I=interest, P=principle, rate=rate (in decimal), and t=time (in years)
:
P=2500
t=1
I=275
r=r (we don't know this yet)
:
275=%282500%29%2Ar%281%29
275=2500r
275%2F2500=r
highlight%28r=.11%29
If you need the interest rate in percentage, multiply it by 100%
r=.11(100%)=11%
:
Happy Calculating!!!