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10 May, 00:49

Dylan borrowed $2100 from the bank for 15 months. The bank discounted the loan at 2.6%. How much was the interest? $ State your result to the nearest penny. How much did Dylan receive from the bank? $ State your result to the nearest penny. What was the actual rate of interest? % State your result to the nearest hundredth of a percent.

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  1. 10 May, 04:35
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    actual rate of interest is 2.08 %

    Step-by-step explanation:

    Given data

    borrowed = $2100

    time = 15 months

    rate = 2.6%

    to find out

    interest and receive from the bank and actual rate of interest

    solution

    we know bank discounted the loan at 2.6%

    so interest will be 2.6% of $2100

    that is = 2.6/100 * 2100

    interest = $54.60

    so receive from the bank is borrowed money - interest

    receive = 2100 - 54.60

    receive from the bank is $2045.40

    and we can say that interest is directly proportional to time

    so interest of 12 months / interest of 15 month = 12 month time / 15 month time

    here interest of 12 months = 12/15 * interest of 15 month

    interest of 12 months = 12/15 * 54.60

    interest of 12 months is $43.68 (annually)

    now we can calculate actual rate of interest

    that is = interest / borrowed money * 100

    actual rate of interest = 43.68/2100 * 100

    actual rate of interest is 2.08 %
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