Darcy McMillan borrowed $3,600 for 7 months nd had an interest charge of $250. Find the approximate annual interest rate to the nearest tenth of a percent.

Question

Darcy McMillan borrowed $3,600 for 7 months nd had an interest charge of $250.  Find the approximate annual interest rate to the nearest tenth of a percent.

amistre64 · Answer

250/7 is the per month interest ... so 12 of those equals a year

anonymous · Answer

35.71?

amistre64 · Answer

that was the interest per month; and for 12 months how much would that have been?

anonymous · Answer

ok so then it would be $428.52

amistre64 · Answer

lets avoid truncating; it builds errors

amistre64 · Answer

12*(250/7) = 428.5714;  is better

soo:  3600, times interest = 428.5714

divide each side by 3600 to determine the interest

amistre64 · Answer

well, both ways are equal to 4 decimal places so i spose thats fine as well

anonymous · Answer

I got 119047

amistre64 · Answer

you missed your decimal .... but yeah

amistre64 · Answer

so lets go with 11.9%

anonymous · Answer

I thought you said 4 decimal places?

amistre64 · Answer

428.52/3600 = 0.1190333333

428.5714/3600 = 0.119047619

both values are equal up to 4 decimal places:  0.1190

anonymous · Answer

oh I see that makes logical sense. :)  Thank you so much! :D
I like when people show all the work so I can understand it verese giving me answers! :D

amistre64 · Answer

youre welcome