Mark borrowed 3400 from a loan shark Mark paid the loan shar
Mark borrowed $3400 from a loan shark. Mark paid the loan shark $7735 back after 17 months. (After being threatened a few times)
What will be the time in the formula i=prt for this calculation-------------------year (Write your answer as a fraction, a/b),
How much of the payment was the interest paid for the loan--------------------?
What was the simple interest rate, APR of this loan------------------? (Round answer to nearest whole percent).
Solution
t=17/12
Amount of interest paid = (7735-3400) = $4335
% interest paid = 4335/3400 = 127.5%
Interest rate:
4335 = 3400*r*(17/12)
Therefore,
r=0.9 or 90%
