Carol Miller went to Europe and forgot to pay her $1,000 mortgage payment on her New Hampshire ski house. For her 25 days overdue on her payment, the bank charged her a penalty of $5. What was the rate of interest charged by the bank? (Use 360 days a year. Do not round your intermediate calculations. Round your answer to the nearest hundredth percent.)

asked by Lexi

4 years ago

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1 answer

assuming simple interest,
1000 * r/360 * 25 = 5
r = .0720 = 7.20%

answered by oobleck

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Question

Carol Miller went to Europe and forgot to pay her $1,000 mortgage payment on her New Hampshire ski house. For her 25 days overdue on her payment, the bank charged her a penalty of $5. What was the rate of interest charged by the bank? (Use 360 days a year. Do not round your intermediate calculations. Round your answer to the nearest hundredth percent.)

1 answer

assuming simple interest,
1000 * r/360 * 25 = 5
r = .0720 = 7.20%

oobleck · Answer

assuming simple interest, 1000 * r/360 * 25 = 5 r = .0720 = 7.20%