Difference between revisions of "1954 AHSME Problems/Problem 33"
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==Solution== | ==Solution== | ||
− | The borrower pays <math>\textdollar{120}</math> in a single year for a loan of <math>\textdollar{114}</math>. This means that the bank charges an interest of <math>\textdollar{6}</math> for a loan of <math>\textdollar{114}</math> over a single year, so that the annual interest rate is <math>100*\frac{\textdollar{6}}{\textdollar{114}} = \frac{100}{19} \approx 5</math> percentage points. Therefore, our answer is <math>\boxed{\text{(A)}</math> and we are done. | + | The borrower pays <math>\textdollar{120}</math> in a single year for a loan of <math>\textdollar{114}</math>. This means that the bank charges an interest of <math>\textdollar{6}</math> for a loan of <math>\textdollar{114}</math> over a single year, so that the annual interest rate is <math>100*\frac{\textdollar{6}}{\textdollar{114}} = \frac{100}{19} \approx 5</math> percentage points. Therefore, our answer is <math>\boxed{\text{(A)}}</math> and we are done. |
==See Also== | ==See Also== |
Revision as of 14:51, 21 August 2020
A bank charges for a loan of . The borrower receives and repays the loan in easy installments of a month. The interest rate is approximately:
Solution
The borrower pays in a single year for a loan of . This means that the bank charges an interest of for a loan of over a single year, so that the annual interest rate is percentage points. Therefore, our answer is and we are done.
See Also
1954 AHSC (Problems • Answer Key • Resources) | ||
Preceded by Problem 32 |
Followed by Problem 34 | |
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