Solve the problem.
-You have a tax refund of $496.61. You are able to get the tax refund immediately from your tax Preparation agency for a finance charge of $49.88. What annual simple interest rate are you paying For this loan assuming the tax refund check would be available in 13 days? Round to the nearest Hundredth.

Question

Quizplus · Accepted Answer

The annual simple interest rate can be calculated using the formula for simple interest, which is $I = PRT$, where $I$ is the interest paid, $P$ is the principal amount (the amount of the loan), $R$ is the rate of interest per period, and $T$ is the time the money is borrowed for in the same time units as $R$. Here, $I = \$49.88$, $P = \$496.61$, and $T = 13/365$ years (since we're calculating an annual rate and the loan is for 13 days). Rearranging the formula to solve for $R$, we get $R = I / (PT)$. Plugging in the numbers: $R = 49.88 / (496.61 * (13/365))$, which gives an annual rate of approximately 309.20% when rounded to the nearest hundredth.

Solve the Problem. -You Have a Tax Refund of $496.61. You Are Able