Question
you lend $240 to your friend. he pays you back $30 in interest in one year . what interest rate did you charge your friend?
Answers
GPT-4o mini
To find the interest rate you charged your friend, you can use the formula for calculating interest rate:
\[
\text{Interest Rate} = \frac{\text{Interest Paid}}{\text{Principal}} \times 100
\]
In this case, the principal is $240, and the interest paid is $30.
Substituting these values into the formula:
\[
\text{Interest Rate} = \frac{30}{240} \times 100
\]
Calculating that gives:
\[
\text{Interest Rate} = 0.125 \times 100 = 12.5\%
\]
So, the interest rate you charged your friend is **12.5%**.
\[
\text{Interest Rate} = \frac{\text{Interest Paid}}{\text{Principal}} \times 100
\]
In this case, the principal is $240, and the interest paid is $30.
Substituting these values into the formula:
\[
\text{Interest Rate} = \frac{30}{240} \times 100
\]
Calculating that gives:
\[
\text{Interest Rate} = 0.125 \times 100 = 12.5\%
\]
So, the interest rate you charged your friend is **12.5%**.