Question
In: Finance
Marcy Link took out a loan for $9,100 at the Eastern Trust Bank for 160 days....
Marcy Link took out a loan for $9,100 at the Eastern Trust Bank for 160 days. The bank uses the ordinary interest method for calculating interest. What rate of interest was charged if the amount of interest was $521.73?
Solutions
Expert Solution
P = Loan Amount = $9,100
n = 160 days
Interest amount = $521.73
Let r = rate of interest
Rate of interest can be calculated using the below formula
Interest amount = P * r * n / 360
$521.73 = $9,100 * r * 160 / 360
r = 12.899917582%
Therefore, rate of interest was charged is 12.90%
jeff jeffy answered 2 years agoRelated Solutions
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