Fred ran short on cash and borrowed $300 through a payday loan company. the company charged him a fee of $60 to borrow the $300 for 14 days. using the simple interest method calculate what interest rate was fred charged for the aforementioned loan.

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Business

Tomas Ibarra

9 April, 13:23

Fred ran short on cash and borrowed $300 through a payday loan company. the company charged him a fee of $60 to borrow the $300 for 14 days. using the simple interest method calculate what interest rate was fred charged for the aforementioned loan.

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Blanche · Answer 1

The answer is 1.43 % per day. Calculations: Formula for simple interest: I=PRT, where I=interest; P = borrowed amount; R=rate of interest in percentage; T=time for repayment hence; P=$300, I=$60, T=14 days, then R=? R={ (I/PT) * 100) }% per day={ (60/300*14) * 100}=1.43 % per day interest rate (R) that Fred was charged for the aforementioned loan was 1.43 % per day