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A business owner obtained a $6,000 loan at a simple annual i

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A business owner obtained a $6,000 loan at a simple annual i [#permalink] New post 22 Nov 2017, 11:50
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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
[Reveal] Spoiler: OA

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Re: A business owner obtained a $6,000 loan at a simple annual i [#permalink] New post 22 Nov 2017, 11:58
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Explanation

\(\frac{6000*r}{100}=6840\)

Now you do have \(r = \frac{6840}{60}\) \(= \frac{6840}{60} = 114 %\)

Now: the extra over 100, which is 14, actually is r; the annual interest rate on $ 6000 of the loan.

D is the answer
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Re: A business owner obtained a $6,000 loan at a simple annual i [#permalink] New post 07 Apr 2018, 23:22
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interest= principle amount*term of interest*rate of interest / 100

Here the total repayment amount includes, principal amount + interest amount.
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Re: A business owner obtained a $6,000 loan at a simple annual i [#permalink] New post 11 Apr 2018, 11:55
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Amount paid after one year = 6840
which includes the interest rate.
6840 = 6000 + 6000r

r = (6840 - 6000)/6000 = 14
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Re: A business owner obtained a $6,000 loan at a simple annual i [#permalink] New post 24 May 2018, 12:44
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Carcass wrote:
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



We see that $6,840 - 6,000 = $840 is the amount of interest paid, so we can create the equation:

840 = 6000 x r/100

84000 = 6000r

14 = r

Answer: D
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Re: A business owner obtained a $6,000 loan at a simple annual i   [#permalink] 24 May 2018, 12:44
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