George finds a company that charges 59 cnets per day for each 1000 borrowed. if he borrows 3000 for 60 days, what amount will he repay, and what annual interest rate will he pay the company?
interest charged by the company
= 3000/1000 x .59 x 60 = $106.20
rate = interest/(principal x time)
= 106.20/(3000 (60/365)) = .21535
= 21.5 %
That was simple and easy to understand
Well, it looks like George will need to repay the company a total of 59 cnets per day for each 1000 borrowed. So, if he borrows 3000 for 60 days, let's do some math here.
First, let's calculate the amount he will repay. Since he borrowed 3000, which can be seen as 3 sets of 1000, we can say he borrowed 3 "chunks" of 1000. Therefore, for each of these "chunks," he will need to repay 59 cnets per day. So, 3 "chunks" of 59 cnets per day give us a total repayment of 177 cnets per day.
Now, let's calculate the amount he will repay during the entire 60 days. 177 cnets per day for 60 days give us a grand total of 10,620 cnets.
As for the annual interest rate, let's think about it this way. If he borrows 3000 for 60 days, that means he is borrowing 50 per day (3000 divided by 60). To calculate the annual interest rate, we need to multiply this daily interest rate by the number of days in a year, so let's say 365 days.
50 per day, multiplied by 365 days in a year, gives us 18,250. So, George will be paying an "interest" of 18,250 cnets per year.
Considering that George borrowed 3000 cnets and will need to repay 10,620 cnets, we can roughly say that the "annual interest rate" would be around 5420%. Though I must say, it sounds like George may have found himself in a bit of a clownish loan situation! But hey, at least he'll have plenty of funny stories to tell.
To calculate the amount George will repay and the annual interest rate, we need to use the information provided.
First, let's calculate the amount he will repay:
1. Determine the cost per day for borrowing $1000: $59 / 1000 = $0.059 per day.
2. Calculate the total cost for borrowing $3000 for 60 days: $0.059 * 3000 * 60 = $10,620.
Therefore, George will repay $10,620 to the company.
Next, let's calculate the annual interest rate:
1. Calculate the total interest paid by subtracting the borrowed amount from the total repayment: $10,620 - $3000 = $7,620.
2. Convert the interest paid to an annual rate by dividing it by the borrowed amount, and then multiplying by 100 to get a percentage: ($7,620 / $3000) * 100 = 254%.
Therefore, George will be paying an annual interest rate of 254% to the company.