Business Math
Lane French had a bad credit rating and went to a local cash center. He took out a 113 loan payable in three weeks at 137. What is the percent of interest paid on this Loan? Do not round denominator before dividing. (Use Calendar year, Round your answer to 2 decimal places. Omit the "%" sign in your response.
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The interest paid on this loan is 33.56%. The interest rate is calculated as follows: Interest = (Principal Amount x Interest Rate) ÷ Total Payment Interest = (113 x 137%) ÷ 120 Interest = 33.56% The interest rate for this loan is calculated by taking the total payment lent (113) and multiplying it by the annual interest rate of 137%, and then dividing it by the total amount to be repaid (120). The answer is then expressed as a percentage.
