The problem is

If you paid $30 to a loan company for the use of $1000 for 60 days, what annual rate of interest did they charge you?

I started out the problem 30(1+60/360)/1000 but all i got was .035 I know this isnt the right anwser.

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- Oct 19th 2008, 08:27 PMangryzooSimple Interest
The problem is

If you paid $30 to a loan company for the use of $1000 for 60 days, what annual rate of interest did they charge you?

I started out the problem 30(1+60/360)/1000 but all i got was .035 I know this isnt the right anwser. - Oct 19th 2008, 08:52 PMShyamReply
interest = $30

Principal P = $1000

Let interest rate = r % annually.

time, t = 60 days $\displaystyle = \frac{60}{365}$ year.

Interest = Prt

$\displaystyle

30 = 1000\times r \times \frac{60}{365}$

$\displaystyle r = 0.1825$

r = 18.25% annually