Question

Lane French had a bad credit rating and went to a local cash center. He took out a $100 loan payable in two weeks at $115. What is the percent of interest paid on this loan? (Do not round intermediate calculations. Round your answer to the nearest whole percent.)

Answer 1

(115-100)/100 = 0.15 = 15%.

Answer 2

Rate= interest / principal*time

interest = 15
Principal =100
Time is 2/52 (2 weeks/ 52 weeks/year)

15/(100*2/52)= 3.90

3.90*100 = 390%