mr. jamison borrows 375,000 to open a pizza place. if he can pay 28,125 a year in interest, what interest rate can he afford to pay on his loan?
To find the interest rate that Mr. Jamison can afford to pay on his loan, divide the annual interest payment by the loan amount and then multiply by 100 to express it as a percentage.
Interest rate = (Interest payment / Loan amount) * 100
Interest rate = (28125 / 375000) * 100
Calculating the fraction inside the parenthesis:
Interest rate = 0.075 * 100
Therefore, Mr. Jamison can afford to pay an interest rate of 7.5% on his loan.