Question

James borrows $4,200 to pay his college tuition. He signs a 5-year simple interest loan. lf the monthly payments are $78.40, what is the interest rate on the loan?

Answer 1

Answer: 22.4%

Step-by-step explanation:

5 years = 60 months

S.I = PTR/100

60 x 78.40 = 4200 x R x 5/100

4,704‬ = 210R

R = 22.4‬%