Ms. Jordan has been given a loan of $2,500 for 1 year. If
the interest charged is $275, what is the interest rate on the loan?
9.09 is this right?
rate = interest/(principal*time)
= 275/2500
= .11
so 11%
No. It's not right. Divide 2500 by 275 and convert your answer to a percent.
To find the interest rate on a loan, you can use the formula:
Interest Rate = (Interest / Principal) * 100
In this case, the principal is the loan amount, which is $2,500, and the interest charged is $275. Let's calculate the interest rate using this formula:
Interest Rate = (275 / 2500) * 100
Interest Rate = 0.11 * 100
Interest Rate = 11
Therefore, the interest rate on the loan is 11%. So, the answer is not 9.09, but 11%.