Business and Finance:Ms. Jordan received a $3,700 loan for 1 year. If the interest charged is $518, What is the interest rate on the loan? The interest rate on the loan is

Answer: The interest rate on the loan is 14%

Step-by-step explanation:

We would apply the formula for determining simple interest which is expressed as

I = PRT/100

Where

I represents interest paid on the loan.

P represents the principal or amount taken as loan

R represents interest rate

T represents the duration of the loan in years.

From the information given,

P = $3700

R = ?

T = 1 year

Interest = $518

Therefore,

518 = (3700 * R * 1) / 100

Multiplying both sides of the equation by 100, it becomes

51800 = 3700R

R = 51800/3700

R = 14%