If 48 days after a $1700.00 loan is charged, it costs $1975.00 to pay it off, what is the annual interest rate?
28%
32.7%
123.8%
123%
To calculate the annual interest rate, we need to find the interest charged on the loan in 48 days.
The interest charged on the loan is ($1975.00 - $1700.00) = $275.00.
To find the annual interest rate, we divide the interest charged by the principal amount and multiply it by the number of periods in a year (which is 365 days):
Annual Interest Rate = ($275.00 / $1700.00) * (365 days / 48 days) = 32.7%
Therefore, the annual interest rate is 32.7%.