Answer: 1.38%
Step-by-step explanation:
A loan of $1,090 was repaid at the end of 12 months with a check for $1,105. From the question, the principal is $1090 ,time is 12 months. Interest is (1105 - 1090) = $15. To calculate the rate goes this:
Formuale is below:
Rate= (Final/initial) - 1
=(1105/1090)-1
= 1.0138 - 1
= 0.0138
= 1.38%
The annual rate of interest is 1.38%
