Question
Find the effective rate of interest (APR) for a loan with a loan amount of $6,300, a time of 270 days, and interest of $685.13.
a. 14.5%
b. 6.5%
c. 9.3%
d. 12.3%
a. 14.5%
b. 6.5%
c. 9.3%
d. 12.3%
Answers
Reiny
Since the time is less than one year, I will use simple interest.
R = I/(PT)
= 685.13/(6300(270/365)) = appr .147
or appr 14.7%
None of your answers match this, but my calculations are correct
R = I/(PT)
= 685.13/(6300(270/365)) = appr .147
or appr 14.7%
None of your answers match this, but my calculations are correct
A studious student
It’s 14.5