1. Mr. Kane recently borrowed $15,000 from his Aunt Jemima, and he has promised to pay his aunt $5,000 per year at 15%. How long will it take Mr. Kane to pay off the entire loan from his aunt?

Question

1. Mr. Kane recently borrowed $15,000  from his Aunt Jemima, and he has promised to pay his aunt $5,000 per year at 15%. How long will it take Mr. Kane to pay off the entire loan from his aunt?

2. You just borrowed $1,000 from Mr. Loan Shark. Mr. Shark requires you to pay $150 per week for the next 10 weeks. What is the effective annual interest rate on this loan?

MattsRiceBowl · Answer

I figured I'd jump in here relatively shortly after you posted this just so you don't check back a day later and see this question.

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