Jack paid $2,280 as interest on a $57,000 loan. What interest rate did he pay to the bank in a year?
I know the answer just don't know how to write it out.
I know the answer just don't know how to write it out.
-
A = P(1+r)^n
I = A - P = P( (1+r)^n - 1)
plugging in,
2280 = 57000( (1+r)^1 - 1) = 57000r
r = 100 *2280/57000 % = 4% <-----------
note:
------
since in this special case, the period n is just 1 year, we could just write
% interest = 100*interest /priincipal = 100*2280/57000 = 4%
I = A - P = P( (1+r)^n - 1)
plugging in,
2280 = 57000( (1+r)^1 - 1) = 57000r
r = 100 *2280/57000 % = 4% <-----------
note:
------
since in this special case, the period n is just 1 year, we could just write
% interest = 100*interest /priincipal = 100*2280/57000 = 4%