Answer:
27.10%
Explanation:
Data provided in the question:
Principle amount = $1,498
Amount returned i.e the future value = $1,904
Time, n = 1 year
Now,
Interest paid = Amount returned - Principle amount
= $1,904 - $1,498
= $406
Using simple interest formula
Interest = Principle × Rate × Time
or
$406 = $1,498 × Rate × 1
or
Rate = 0.2710 or
= 0.2710 × 100%
= 27.10%
Based on the information given the interest rate that Paul is paying is:27.10%.
Given:
Principal= $1,498
Future value = $1,904
Time= 1 year
Interest paid = Amount returned - Principal
Interest paid = $1,904 - $1,498
Interest paid= $406
Interest rate=$406/$1,498 ×100
interest rate=27.10%
Inconclusion the interest rate that Paul is paying is:27.10%.
Learn more about interest rate here:https://brainly.com/question/25545513
