A loan company charges 20 dollars interest for a two month loan of 325 dollars. Find the annual interest rate (APR) they are charging. Round interest to tenth of a percent.
I have a loan formula, would I use that to find R?
+118723 A loan company charges 20 dollars interest for a two month loan of 325 dollars. Find the annual interest rate (APR) they are charging. Round interest to tenth of a percent.
I have a loan formula, would I use that to find R?
Mmm
It would depend on how often they add interest to the principal, that is , what is the compounding period.......
but
20/325= 6.1538461%
so nominal annual interest rate may be 6*6.1538461%=36.9230769% = 36.9%
I'm not borrowing any money off them!!
