Use the ordinary interest method to find the rate of interest that Make Over Picture Photo pays on a loan of $8,000 for 285 days, if the amount of interest is $590.00. (Round your answer to the nearest tenth percent)
A) 9.3%
B) 9.1%
C) 9.0%
D) 8.1%

Question

Quizplus · Accepted Answer

The ordinary interest method (using a 360-day year) calculates interest as $I = PRT$, where $I$ is interest, $P$ is principal, $R$ is rate, and $T$ is time in years. Here, $I = $590$, $P = $8,000$, and $T = 285/360$ years. Solving for $R$, we get $R = I / (PT)$, which gives $R = 0.093$ or 9.3%.

Use the Ordinary Interest Method to Find the Rate of Interest