Respuesta :
Answer:
The annual rate of interest is 650 %.
Step-by-step explanation:
Given,
The amount of loan = $ 552,
Total amount paid after one month = $ 851,
So, the interest for one month = $ 851 -$ 552 = $ 299,
Thus, the monthly interest = [tex]\frac{\text{Interest for a month}}{\text{Total amount of loan}}\times 100[/tex]
[tex]=\frac{299}{552}\times 100[/tex]
[tex]=\frac{29900}{552}[/tex]
Since, 1 year = 12 month ⇒ 1 month = 1/12 year,
Hence, the annual rate of interest = [tex]\frac{29900}{552}\times 12=\frac{358800}{552}=650\%[/tex]
Answer:
650.2%
Step-by-step explanation:
We have to calculate annual interest rate by this formula :
A = P( 1 + rt )
A = Future value of loan ( $851 )
P = Principal amount ( $552 )
r = Rate of interest
t = Time in years
As we know, 1 year = 12 months . By converting 1 month to year we get
1 month = [tex]\frac{1}{12}[/tex] year = 0.0833 year
Now we put the values in the formula
$851 = $552( 1 + r × 0.0833 )
= [tex]\frac{851}{552} =\frac{552(1+(0.0833r))}{552}[/tex]
= 1.5417 = 1 + 0.0833r
= 1.5417 - 1 = 0.0833r
= 0.5417 = 0.0833r
r = 6.502
r is in decimal form so we have to multiply with 100 to convert the value in percentage.
6.502 × 100 = 650.2%
The annual interest rate that you pay is 650.2%
