Asked by glen

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 $106.00. What is the percent of interest paid on this loan?

Answers

Answered by Reiny
Using the simple interest formula
I = PRT
6 = 100(R)(2/52)
R = 6(52)/200 = 1.56 or 156 % per year

(in the Middle Ages, they would have been burned at the stake for usury)
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