document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=781932>Question 781932</A>: <I><SPAN STYLE=\"word-break: break-all;\"> The Payday Loan Company lends you $500. After 2 weeks you pay back $520. What is the simple interest rate? Note that the time is a fraction of a year. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #476174 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=476174\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> The Payday Loan Company lends you $500. After 2 weeks you pay back $520. What is the simple interest rate? Note that the time is a fraction of a year.<BR>\n" );
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document.write( "A(t) = P(1+rt)<BR>\n" );
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document.write( "520 = 500(1+r(2/52))<BR>\n" );
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document.write( "1.04 = 1+0.0385r<BR>\n" );
document.write( "0.0385r =  0.04<BR>\n" );
document.write( "r = 1.039 = 103.9%<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
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