Respuesta :
Answer:
7.04%.
Step-by-step explanation:
We have been given that John borrows 2500 from his dad who feels it is best to charge him interest. Six months later, John repays him dad the loan plus interest a total of 2588.
To find the annual interest rate, we will use simple interest formula.
[tex]A=P(1+rt)[/tex], where,
A = Amount after t years,
P = Principal amount,
r = Annual interest rate,
t = Time in years.
Let us convert our given time in years.
1 year = 12 months
[tex]\text{ 6 months}=\text{0.5 year}[/tex]
Upon substituting our given values in above formula, we will get:
[tex]2588=2500(1+r*0.5)[/tex]
[tex]2588=2500+1250r[/tex]
[tex]2588-2500=2500-2500+1250r[/tex]
[tex]88=1250r[/tex]
Switch sides:
[tex]1250r=88[/tex]
[tex]\frac{1250r}{1250}=\frac{88}{1250}[/tex]
[tex]r=0.0704[/tex]
Now, we will convert our given rate in percentage by multiplying by 100.
[tex]0.0704\times 100\%=7.04\%[/tex]
Therefore, the annual interest rate on the loan is 7.04%.
Answer:
6.92%
Step-by-step explanation:
Using the equation 2,588 = 2,500e0.5r
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