Answer
40%
Work Step by Step
Calculation of interest can be done with the mentioned formula:
\[r=\frac{A-P}{Pt}\]
Where A denotes the Future value of the amount, P denotes the Principal amount, r denotes the rate of interest, and t denotes the number of years.
Compute the interest rate by substituting the values in the formula as mentioned below:
\[\begin{align}
& r=\frac{A-P}{Pt} \\
& =\frac{\$1,800-\$1,500}{\$1,500\times0.5}\\&=\frac{\$300}{750}\\&=40percent\end{align}\]
Hence, the interest rate paid on the loan is 40%
