a 150-day loan for $2,500 has interest of $57. Find the rate to the nearest tenth of a percent.
a. 3.2%
b. 24.4%
c. 10.4%
d. 5.5%
Please walk me through on how you got the answer. I have tried, and can not figure it out.
I = PRT
57 = 2,500 * R * 0.4167
57 = 1041.665R
0.0547 = 5.5% = R
To find the interest rate, we need to use the formula for simple interest: Interest = Principal * Rate * Time.
In this case, we know the Principal (loan amount) is $2,500 and the Time is 150 days. The interest is given as $57.
Let's plug these values into the formula and solve for Rate.
57 = 2500 * Rate * 150
Now divide both sides of the equation by the product of Principal and Time (2500 * 150):
57 / (2500 * 150) = Rate
To get the answer to the nearest tenth of a percent, we can use a calculator or long division to solve this expression:
0.000152 = Rate
Now, convert this decimal to a percent by moving the decimal point two places to the right:
Rate = 0.0152 * 100 = 1.52% (rounded to two decimal places)
Therefore, the correct option is not listed among the answer choices provided.