Question

Grab Bag 119. Second Law Capital Ventures (SLCV) funded a start-up company with a loan of $2,857,000. Thirty months later, the company repaid SLCV the principal together with interest of $612,826.50. What was the simple interest rate on this loan?

Answer 1

Given, Pecinciple amount $ 2,857,000 Time given 30 months In years it would be 30 years, = $ 61 2826.50 Interest for 30 years We have to calculate rate Interest basis. on this sum on simple Interest - As we know, In Simple Interest cabulchione, Principle x Time Rate 100 since, All the items are given, encept rate, we can easily calculate that by putting values in this equation so he we Interest - go:- Principle & Time x Rate 100 612826.50 - 2857000 X 30/12 X Rate => 2857000 X 30 x Rale 100 612826.50 100 x 12 - Rate 612826. 50 X100 X 12 0 60 Rate 0-95808.59 2857000 x 30 8.58 percent per year. the equation, we 8.58 d. Hence, By putting given values get the rate per year in on the