Dan borrowed $3600 and pays a fortnightly interest of $27. Calculate the yearly interest rate?
The yearly interest is $27/14 days x 365 days/year = $<<27/14*365=709.29>>709.29
The yearly interest rate is $709.29/$3600 x 100% = 19.70%. Answer: \boxed{19.70}.
12.708 round to 3 significant figures
12.7
12.70853681 round to 3 significant figures
12.7
To calculate the yearly interest rate, we need to find the total interest paid over a year and divide it by the amount borrowed.
Step 1: Calculate the total interest paid over a year
Since the interest is paid fortnightly, we need to find the number of payments in a year.
There are 52 weeks in a year, and each fortnight is equal to 2 weeks.
Number of payments in a year = 52 weeks / 2 = 26 payments
Total interest paid over a year = fortnightly interest * number of payments
Total interest paid over a year = $27 * 26 = $<<27*26=702>>702
Step 2: Calculate the yearly interest rate
Yearly interest rate = (Total interest paid over a year / Amount borrowed) * 100%
Yearly interest rate = ($702 / $3600) * 100%
Yearly interest rate = 0.195 * 100%
Yearly interest rate = 19.5%
Therefore, the yearly interest rate is 19.5%.
To calculate the yearly interest rate, we need to first determine the total interest paid over a year. In this case, the interest is paid fortnightly.
Since there are 52 weeks in a year and Dan pays fortnightly, he would be making (52/2) = 26 interest payments during the year.
Next, we calculate the total interest paid over a year by multiplying the fortnightly interest payment ($27) by the number of interest payments made in a year (26).
Total yearly interest = $27 * 26 = $702.
Finally, we calculate the yearly interest rate by dividing the total yearly interest by the amount borrowed and multiplying by 100 to convert it into a percentage.
Yearly interest rate = (Total yearly interest / Amount borrowed) * 100.
Yearly interest rate = ($702 / $3600) * 100.
Calculating this:
Yearly interest rate = (0.195) * 100.
Yearly interest rate = 19.5%.
Therefore, the yearly interest rate on Dan's loan is 19.5%.