Question

The cost of a loan for $294 over one year is $8.82. What was the rate on the loan?

Answer 1

Rate of Interest `R = 3%`

Explanation:

Principal `P = $ 294`, Period `N = 1 year`, Interest `I = $ 8.82`

To find the rate of Interest `R %`

`R = (100 * I) / (P * N)`

`R = (100 * cancel(8.82)) / (cancel(294)^color(red)(33.33) * 1)`

`R = 100 / 33.33 = 3%`