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 67761: 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?
Answer by tutorcecilia(2152) About Me  (Show Source):
You can put this solution on YOUR website!
Interest = (Principle)(rate)(time) [Formula for simple interest]
275=(2500)(r)(1) [Plug-in the values and solve for the rate (r)]
275/2500=(2500r)/2500
.11=r [multiply the rate by 100%]
(.11)(100%)=r
11%=rate
.
Check by plugging all of the values back into the original equation and solve]
I=Prt
275=2500(1)(.11)
275=275 [checks out]