dr johnson wants to borrow 450,000 to build a drive thru optometry clinic. if the doctor can pay no more than 42,750 a year in interest, what is the max interest rate he can afford to pay on his loan?
To determine the maximum interest rate the doctor can afford to pay on his loan, we divide the maximum yearly interest payment by the total loan amount and multiply by 100 to convert it into a percentage.
Max interest rate = (Max yearly interest payment / Loan amount) * 100
Max interest rate = (42,750 / 450,000) * 100
Max interest rate = 0.095 * 100
Max interest rate = 9.5%
Therefore, the maximum interest rate the doctor can afford to pay on his loan is 9.5%.
To find the maximum interest rate that Dr. Johnson can afford to pay on his loan, we need to divide the maximum annual interest payment by the loan amount and convert it to a percentage.
Max annual interest payment = $42,750
Loan amount = $450,000
Max interest rate = Max annual interest payment / Loan amount
Max interest rate = $42,750 / $450,000
Max interest rate = 0.095 or 9.5%
Therefore, the maximum interest rate that Dr. Johnson can afford to pay on his loan is 9.5%.
To find the maximum interest rate the doctor can afford to pay on his loan, we need to divide the maximum interest payment by the loan amount and convert it into a percentage.
First, let's calculate the maximum interest payment per year, which is $42,750.
Then, we divide the maximum interest payment by the loan amount to get the interest rate:
$42,750 / $450,000 = 0.095
To convert this into a percentage, we multiply it by 100:
0.095 * 100 = 9.5
Therefore, the maximum interest rate the doctor can afford to pay on his loan is 9.5%.