What is the rate of interest on a $10,000 loan that is to be repaid in 10 equal annual installments of $1,917.
A)8%
B)10%
C)14%
D)16%
E)15%

Question

Quizplus · Accepted Answer

The formula to calculate the interest rate on an installment loan is:
Interest Rate = (Installment Amount x Total Number of Installments - Loan Amount) / (Loan Amount x Total Number of Installments) x 100%
Plugging in the given values:
Interest Rate = (1917 x 10 - 10000) / (10000 x 10) x 100% 
Interest Rate = 14%
Therefore, the answer is (C) 14%.

What Is the Rate of Interest on a $10,000 Loan