Nathan Edwards Borrowed $2,500 for 60 Days to Buy New

question 62

Short Answer

Nathan Edwards borrowed $2,500 for 60 days to buy new clothes after an apartment fire. From his insurance proceeds, Nathan repaid a total of $2,531.25, principal and interest. Compute the ordinary simple interest rate (360-day year) that was charged. (To nearest 1/10 of a percent.)

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Definitions:

Catastrophic

describes an event causing sudden and extensive damage or suffering; often unforeseeable and with significant impact.

Reliability

The degree to which a system, component, or process consistently performs its intended function under specified conditions over time.

Function Properly

To function properly means to operate or perform as intended or expected, usually referring to machines, systems, or organs within living organisms.

System Reliability

The measure of a system's ability to perform its required functions under stated conditions for a specified period of time.