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 86057: 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 dolly(163) About Me  (Show Source):
You can put this solution on YOUR website!
Amount of loan = $2500
Period = 1 yr
Interest = $275
So rate of interest = (100*I)/P*T
= 100*275/2500*1
= 27500/2500
= 11%