Question

You loan from a loan firm an amount of 100,000 with a rate of simple interest of 20 % but the interest was deducted from the loan at the time the money was borrowed. If at the end of one year, you have to pay the full amount of 100,000, what is the actual rate of interest?

Name: you loan from a loan firm an amount of 100000 with a rate of simple interest of 20 but the interest was deducted from the loan at the time the money was borrowed if at the end of one year yo 36707
Uploaded: 2022-08-11T22:52:06-08:00
Duration: 2 min 47 s
Channel: Andrew Davis
Description: you loan from a loan firm an amount of 100000 with a rate of simple interest of 20 but the interest was deducted from the loan at the time the money was borrowed if at the end of one year yo 36707

          You loan from a loan firm an amount of 100,000 with a rate of simple interest of 20 % but the interest was deducted from the loan at the time the money was borrowed. If at the end of one year, you have to pay the full amount of 100,000, what is the actual rate of interest?

Added by Bryan T.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Andrew Davis

08/11/2022

Step 1

The loan amount is $100,000 and the simple interest rate is 20%. \[ \text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time} \] \[ \text{Interest} = 100,000 \times 0.20 \times 1 \] \[ \text{Interest} = 20,000 \] Show more…

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You loan from a loan firm an amount of 100,000 with a rate of simple interest of 20 % but the interest was deducted from the loan at the time the money was borrowed. If at the end of one year, you have to pay the full amount of 100,000, what is the actual rate of interest?