What is the rate of interest on a loan of $2,000, for 284 days, if the amount of interest is $93.37, using the exact interest method? (Round your answer to the nearest tenth percent)
A) 14.5%
B) 4.7%
C) 5.9%
D) 6.0%

Question

Quizplus · Accepted Answer

The exact interest method takes into account the exact number of days in the year, which is 365 or 366 in a leap year. The formula for exact interest is:Interest = Principal x Rate x Time / 365$93.37 = $2,000 x Rate x 284 / 365Rate = 93.37 x 365 / 2,000 x 284Rate = 0.06004 or 6.0%

What Is the Rate of Interest on a Loan of $2,000