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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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
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