SOLUTION: A man borrowed $950. Six months later, he repaid the loan (principal and interest) with $1150. What simple interest rate did he pay? (Round your final answer to two decimal places.

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Question 1148486: A man borrowed $950. Six months later, he repaid the loan (principal and interest) with $1150. What simple interest rate did he pay? (Round your final answer to two decimal places.)
Found 2 solutions by ikleyn, josmiceli:
Answer by ikleyn(52840)   (Show Source): You can put this solution on YOUR website!
.

1150 = 950 + 950*r*0.5


1150-950 = 950*r*0.5


200 = 950*r*0.5


r =  = 0.421 = 42.1%  annual percentage rate simple interest (aproximately).

In my solution, 0.5 = 0.5 of an year = 6 months.



Answer by josmiceli(19441)   (Show Source): You can put this solution on YOUR website!


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I assume it's annual interest, so I used
which is 6 months


42.11%
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