What is the rate of interest on a loan of $2,000, for 282 days, if the amount of interest is $139.07, using the exact interest method? (Round your answer to the nearest tenth percent.) O 7.0% 8.9% O 9.0% 14.2%

What is the rate of interest on a loan of $2,000, for 282 days, if the amount of interest is $139.07, using the exact interest method? (Round your answer to the nearest tenth percent.) O 7.0% 8.9% O 9.0% 14.2%

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 7FPE: Calculating interest and APR of installment loan. Assuming that interest is the only finance charge,...

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

What is the rate of interest on a loan of $2,000, for 282 days, if the amount of interest is $139.07, using the exact interest method? (Round your answer to the nearest tenth
percent.)
O 7.0%
8.9%
9.0%
O 14.2%

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