Question

The cost of a loan for $294 over one year is $8.82. What was the rate on the loan?

Answer 1

Rate of Interest

R

=

3

%

Explanation:

Principal

P

=

$

294

, Period

N

=

1

y

e

a

r

, Interest

I

=

$

8.82

To find the rate of Interest

R

%

R

=

100

⋅

I

P

⋅

N

R

=

100

⋅

8.82

294

33.33

⋅

1

R

=

100

33.33

=

3