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1 vote
Darcy McMillan borrowed $3600 for 7 months and had an interest charge of $250. Find the approximate annual interest rate to the nearest tenth of a percent

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User Xunux
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1 Answer

5 votes
To find the approximate annual interest rate to the nearest tenth of a percent, we can use the formula:

I = Prt

where I is the interest charged, P is the principal amount borrowed, r is the annual interest rate as a decimal, and t is the time in years.

We know that Darcy borrowed $3600 for 7 months, which is equivalent to 7/12 years. We also know that the interest charged was $250.

Substituting these values into the formula, we get:

250 = 3600r(7/12)

Simplifying this equation, we get:

r = 250 / (3600 * 7/12)

r ≈ 0.0903 or 9.03%

Therefore, the approximate annual interest rate to the nearest tenth of a percent is 9.0%.
answered
User Skistaddy
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8.0k points
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