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Saul paid off a loan with a simple interest rate of 4.7% in 9 months. What was the APR?
6.4%
8.5%
3.5%
6.3%
4.7%

Sagot :

Using proportions, it is found that the APR was of 6.3%.

What is a proportion?

A proportion is a fraction of a total amount, and the measures are related using a rule of three.

In this problem, 4.7% was paid in interest in 9 months. The APR is the amount that would be paid in a year, that is, 12 months.

Hence, the rule of three is:

9 months - 4.7%

12 months - x%

Applying cross multiplication:

[tex]9x = 12(4.7)[/tex]

[tex]x = \frac{12 \times 4.7}{9}[/tex]

[tex]x = 6.3[/tex]

The APR was of 6.3%.

More can be learned about proportions at https://brainly.com/question/24372153

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