# Math Help - Simple Interest

1. ## Simple 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.

interest = $30 Principal P =$1000
Let interest rate = r % annually.

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

Interest = Prt

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

$r = 0.1825$

r = 18.25% annually