Question

1. -/1 points mike drago took out a loan for $3,600 at the gold coast bank for 270 days. if the bank uses the ordinary interest method, what rate (in %) of interest was charged if the amount of interest was $239? round your answer to the nearest tenth of a percent.

Explanation:

Step1: Recall ordinary interest formula

Ordinary interest formula: $I = P \times r \times \frac{t}{360}$, where $I$ = interest, $P$ = principal, $r$ = annual interest rate, $t$ = time in days. We solve for $r$: $r = \frac{I \times 360}{P \times t}$

Step2: Plug in given values

Given $I = 239$, $P = 3600$, $t = 270$
$r = \frac{239 \times 360}{3600 \times 270}$

Step3: Calculate numerator and denominator

Numerator: $239 \times 360 = 86040$
Denominator: $3600 \times 270 = 972000$

Step4: Compute rate and round

$r = \frac{86040}{972000} \approx 0.0885185$, convert to percent: $0.0885185 \times 100 = 8.85185\%$, round to nearest tenth: $8.9\%$

Answer:

$8.9\%$