Lane French had a bad credit rating and went to a local cash center. He took out a 113 loan payable in three weeks at 137. What is the percent of interest paid on this Loan? Do not round denominator before dividing. (Use Calendar year, Round your answer to 2 decimal places. Omit the "%" sign in your response.

Question

Lane French had a bad credit rating and went to a local cash center. He took out a 113 loan payable in three weeks at 137.  What is the percent of interest paid on this Loan?  Do not round denominator before dividing. (Use Calendar year, Round your answer to 2 decimal places.  Omit the "%" sign in your response.

MathMate · Answer

Time, t=3 weeks = 3/52 year Princial, P = 113 Principal + interest, A = 137 rate of interest = r Use A = P(1+r)t Solve for r r=At/P-1 =137/(3/52)/113-1 =2001%