Hot Air Balloon Tours, Inc. must pay the bank $23,515.27 in interest 200 days after making a loan of $328,120 to purchase hot air balloons. What is the simple interest rate? Round to the nearest tenth

Respuesta :

From the question, we have the following parameters.

[tex]\begin{gathered} \text{Interest}=\text{ \$}23,515.27 \\ Time\text{ = 200days} \\ \text{Principal}=\text{ \$}328,120 \\ \text{Interest rate=?} \end{gathered}[/tex]

The formula for simple interest is given as:

[tex]\text{ I=}\frac{prt}{100}[/tex]

Therefore, we will have;

[tex]\begin{gathered} 23515.27=\frac{328120\times\frac{200}{365}\times r}{100} \\ 23515.27=\frac{328120\times200\times r}{100\times365} \\ r=\frac{23515.27\times100\times365}{200\times328120} \\ r=13.1\text{\%} \end{gathered}[/tex]

Answer: 13.1%