Lane French had a bad credit rating and went to a local cash center. He took out a $100.00 loan payable in two weeks at $105.50. What is the percent of interest paid on this loan?

Answer 1

I = PRT

5.50 = 100 * R * 0.0385

5.5 = 3.85R

100(5.5/38.5) = R

143% = R

Answer 2

100(5.5/3.85) = R

143% = R