Question

Initial Knowledge Check Question 2 Hong took out a $20,000 loan for 146 days and was charged simple interest. The total interest he paid on the loan was $488. As a percentage, what was the annual interest rate of Hong's loan? Assume that there are 365 days in a year, and do not round any intermediate computations. If necessary, refer to the list of financial formulas.

          Initial Knowledge Check
Question 2
Hong took out a $20,000 loan for 146 days and was charged simple interest.
The total interest he paid on the loan was $488.
As a percentage, what was the annual interest rate of Hong's loan?
Assume that there are 365 days in a year, and do not round any intermediate computations.
If necessary, refer to the list of financial formulas.

Initial Knowledge Check
Question 2
Hong took out a 20,000 loan for 146 days and was charged simple interest.
The total interest he paid on the loan was488.
As a percentage, what was the annual interest rate of Hong's loan?
Assume that there are 365 days in a year, and do not round any intermediate computations.
If necessary, refer to the list of financial formulas.

Added by Stephen R.

Elementary and Intermediate Algebra

Alan S. Tussy, R. David Gustafson 5th Edition

Instant Answer

Solved by Expert Donna Densmore

10/28/2023

Step 1

Step 1: The simple interest formula is: $$I = Prt$$ where: * I is the interest * P is the principal * r is the interest rate * t is the time in years Show more…

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Initial Knowledge Check Question 2 Hong took out a $20,000 loan for 146 days and was charged simple interest. The total interest he paid on the loan was $488. As a percentage, what was the annual interest rate of Hong's loan? Assume that there are 365 days in a year, and do not round any intermediate computations. If necessary, refer to the list of financial formulas.