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Question
If the interest on a loan at 11% per annum for four months is $42,625.00 what is the amount of the loan?
hi todd,
An interest rate of 11% p.a. is equivalent to 0.11 when written in decimal form.
We have to divide this figure by 3, since the interest was calculated for a period of 4 months (out of 12 months in a year).
So, the effective interest rate is 0.11/3 = 0.0366666. Let's call this "R".
The amount of the loan is given by 42625/R.
42625/0.0366666... gives 1162500, i.e., 1.1625 million.
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| Comment | Thanks Josh! That was very quick and accurate! | ||
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Answers by Expert:
Josh
Expertise
When I work through problems, I like to emphasize concepts which I believe are worth noting. I will try to answer questions in the following areas, but not at the advanced level. Algebra. Sequences & Series. Trigonometry. Functions & Graphs. Coordinate Geometry. Quadratic Polynomials. Exponential & Logarithms. Basic Calculus. Probability, Permutation and Combination. Mathematical Induction. Complex numbers. Physics problems.
Experience
I have worked as a teaching assistant in college. My hope is that more people will share knowledge without boundary, give help without seeking recognition or monetary rewards.
Education/Credentials
Bachelor degree in Engineering Science
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