Posted by **patti help** on Wednesday, March 21, 2007 at 3:52pm.

if a loan is given for 2,500 for 1 year and the interest charged is 275 dollars what is the interest rate on the loan? how do I go about solving this do I subtract the 275 from 2500.

Interest=Principal*Rate*Time

275=2500(rate)(1)

rate=275/2500

=.11

so the "simple" interest rate is 11%