SOLUTION: To borrow money, you pawn your guitar. Based on the value of the guitar, the pawnbroker loans you $840. One month later, you get the guitar back by paying the pawnbroke
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Question 1176673: To borrow money, you pawn your guitar. Based on the value of the guitar, the pawnbroker loans you $840. One month later, you get the guitar back by paying the pawnbroker $1472. What annual interest rate did you pay?
You will pay a simple interest rate of __%
(Round to the nearest whole number as needed.)
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
he gives you 840.
one month later, you pay him 1472.
the interest charge for one month was 1472 - 840 = 632.
if that was the interest charge for one month, then the interest charge for one year would have been 632 * 12 = 7584.
the interest rate for one month was 632 / 840 = .7523809524 = 78.23809524%.
the interest rate for one year would have been (632 * 12) / 840 = 7584 / 840 = 9.028571429 = 902.9581420%.
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