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?

  • Paul F Paul F
    0

    30 days or 30 years?

  • Mimiii Mimiii
    +1

    30 Days, a short term loan

1 Answer

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
\[r=12 \times 0.31223=3.74676=374.676 \%.\]

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