SOLUTION: Solve the following word problems. Be sure to show the equation you use for the solution.
26) Business and finance. Ms. Jordan has been given a loan of $2500 for 1 year. If the
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26) Business and finance. Ms. Jordan has been given a loan of $2500 for 1 year. If the
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Question 86470: Solve the following word problems. Be sure to show the equation you use for the solution.
26) Business and finance. 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) (Show Source):
You can put this solution on YOUR website! Interest formula:
Use the formula for interest (I=Prt)]
I=interest=$275
P=principle=$2500
r=rate
t=time=1
.
Plug in the values and solve for the unknown variable (rate (r)
I=Prt
275=(2500)(r)(1)
275=2500r
275/2500=4
.11=4
(.11)(100%)=4
11%=r
.
check by plugging all of the values back into the original equation and solve:
I=Prt
275=(2500)(.11)(1)
275=275 [checks out]
