A radio commercial for a loan company states You only pay 33

A radio commercial for a loan company states: \"You only pay 33cents a day for each $500 borrowed.\" If you borrow $1,805 for 153 days, what amount will you repay, and what annual interest rate is the company actually charging? (Assume a 360-day year.)

Solution

Total Interest = .33*1805*153 / 500 = $ 182.2689
so total amount to be repay = 1805+182.2689 = $ 1987.2689

and annual interest = P*r*t

182.2689 = 1805*(r/100)*(153/360)= 23.76 %