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Lane French has a bad credit rating and went to a local cash center. He took out a $100 loan payable in two weeks at $113.50. What is the percent of interest paid on this loan?

Respuesta :

Answer: Percent of interest paid on this loan annually = 351% p.a

Step-by-step explanation:

Given that,

principal amount = $100(loan)

time period =  14 days

interest amount (SI) = $13.50

we have to calculate the rate of interest (i),

Simple interest(SI) = principal amount × rate of interest (i) × time period

13.50 = 100 × i × [tex]\frac{14}{365}[/tex]

i = [tex]\frac{4927.5}{1400}[/tex]

i = 3.51

i = 351% p.a.

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