Dan borrowed $3600 and pays a fortnightly interest of $27. Calculate the yearly interest rate?
To calculate the yearly interest rate, we need to know how many interest payments are made in a year.
Since Dan pays interest fortnightly, there are 26 fortnights in a year (52 weeks divided by 2).
So, the total interest paid in a year is $27 x 26 fortnights = $702.
To find the yearly interest rate, we divide the total interest paid by the amount borrowed:
Yearly interest rate = $702 / $3600 = 0.195 or 19.5%.
Therefore, the yearly interest rate is 19.5%.
To find the yearly interest rate, we first need to determine the total interest paid in one year.
Since Dan pays a fortnightly interest of $27, we can calculate the yearly interest as follows:
Total interest per fortnight = $27
Number of fortnights in one year = 52 (since there are 26 fortnights in a year)
Total interest paid in one year = $27 * 52
Total interest paid in one year = $1,404
To calculate the yearly interest rate, we divide the total interest by the loan amount:
Yearly interest rate = (Total interest paid in one year / Loan amount) * 100
Yearly interest rate = ($1,404 / $3,600) * 100
Yearly interest rate = 0.39 * 100
Yearly interest rate = 39%
Therefore, the yearly interest rate is 39%.