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D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
5%
(low)
Question Stats:
89% (01:21) correct
11%
(01:27)
wrong
based on 96
sessions
History
Date
Time
Result
Not Attempted Yet
A business owner obtained a $6,000 loan at a simple annual interest rate of r percent in order to purchase a computer. After one year, the owner made a single payment of $6,840 to repay the loan, including the interest. What is the value of r ?
A. 7.0
B. 8.4
C. 12.3
D. 14.0
E. 16.8
A. 7.0
B. 8.4
C. 12.3
D. 14.0
E. 16.8
23 May 2018, 09:00
Kudos
Bookmarks
Bunuel
\(Interest = 840\)
\(R = \frac{100*840}{6000*1}\)
Or, \(R = 14\)%, Answer must be (D)
23 May 2018, 09:13
Kudos
Bookmarks
Solution
Given:
• Loan amount = $6000
• Rate of interest = r% simple interest
• Amount after 1 year = $6840
To find:
• The value of r
Approach and Working:
For simple interest repayment, we can write
- • Amount = Principal + Interest
Or, 6840 = 6000 + r% of 6000
Or, 6000 * \(\frac{r}{100}\) = 840
Or, r = \(\frac{840}{60}\) = 14
So, the value of r is 14.
Hence, the correct answer is option D.
Answer: D
