Dan borrowed K3600 and pays a fortnight interest of K27. Calculate the yearly interest rate?
To find the yearly interest rate, we need to know the total interest paid in a year.
Since Dan pays a fortnight (every 2 weeks) interest of K27, we need to find out how many fortnights are in a year.
There are 52 weeks in a year.
Since there are 2 weeks in a fortnight, we divide 52 by 2 to find the number of fortnights in a year: 52 / 2 = 26 fortnights.
Now, to calculate the total interest paid in a year, we multiply the fortnightly interest (K27) by the number of fortnights in a year: K27 * 26 = K702.
Therefore, the yearly interest rate is K702.
To calculate the yearly interest rate, we need to know the total interest accrued in a year.
Given that Dan borrowed K3600 and pays a fortnight interest of K27, we can calculate the total interest paid in a year by multiplying the fortnight interest by the number of fortnights in a year.
There are 26 fortnights in a year (52 weeks / 2), so the yearly interest paid can be calculated as follows:
Yearly Interest = Fortnight Interest x Number of Fortnights in a Year = K27 x 26 = K702
Now that we have the yearly interest, we can calculate the interest rate by dividing the yearly interest by the principal amount borrowed, and then expressing it as a percentage.
Yearly Interest Rate = (Yearly Interest / Principal Amount) x 100%
Yearly Interest Rate = (K702 / K3600) x 100% = 0.195 x 100% = 19.5%
Therefore, the yearly interest rate is 19.5%.