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A loan of $4,000 was repaid at the end of 19 months with a check for $4,270. What annual simple interest rate was charged?

Respuesta :

lavanyaande

The rate of interest is 4.3%.

Step-by-step explanation:

Given,

Principal (P) = $4000

Amount (A) = P+I = $4270

Time(T) = 19 months = [tex]\frac{19}{12}[/tex] years

Interest(I) = $4270-4000 = $270

To find the rate of interest.

Formula

I = [tex]\frac{PTR}{100}[/tex]

so,

R = [tex]\frac{100XI}{PT}[/tex]

R = [tex]\frac{100X270X12}{4000X19}[/tex]

= 4.26% = 4.3% (approx)

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