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Marty Not is going to borrow $9,800 for 75 days and pay $171 in interest.

 

What is the annual rate of interest if the loan is discounted? (Use 365 days in a year. Do not round intermediate calculations. Round the final answer to 2 decimal places.)

 

Annual rate of interest =


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Answer #1

REF::  https://www.homeworklib.com/question/1211002/marty-not-is-going-to-borrow-14700-for-60-days 

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Answer #2

SOLUTION :


Interest rate for 75 days period = 171/9800 


Annual rate of interest 

= interest rate for the period * number of periods in a year

= 171/9800 * (365/75)

= 0.0849

= 8.49% (ANSWER).


answered by: Tulsiram Garg
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