Simple interest loan for $1000. Paid back after 30days with interest?

Simple interest rate loan for $1000.

Paid back after 30days with interest for total of $1312.33.
What's the interest rate?

Statistics Real Analysis Word Problem
Mimiii Mimiii
10
Report
  • Paul F Paul F
    0

    30 days or 30 years?

  • Mimiii Mimiii
    +1

    30 Days, a short term loan

2 Answers

You have paid an interest of $312.23$ for 1 month. The monthly interest rate is 
\[\frac{312.23}{1000}=0.31223=31.223 \%.\]
The yearly interest rate is
\[r=12 \times 0.31223=3.74676=374.676 \%.\]

Savionf Savionf
574

To find the simple interest rate, we can use the simple interest formula:
I = Prt
Where:
I = interest
P = principal
r = annual interest rate (in decimal)
t = time in years

Step 1: Find the interest earned 
I = 1312.33-1000 = 312.33

Step 2: Use the formula to solve for r
Since time is 30 days, we convert it to years:
t = 30/365

Plugging it into the formula:
312.33 = 1000(r)(30/365)
312.33 = 1000(r)(0.08219178082)
312.33 = 82.19178082r
r = 312.33/82.19178082
r = 3.800015
r = 380.00%

Sean Gyen Medrano Sean Gyen Medrano
6
Join Matchmaticians Affiliate Marketing Program to earn up to a 50% commission on every question that your affiliated users ask or answer.