document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1198756>Question 1198756</A>: <I><SPAN STYLE=\"word-break: break-all;\"> If $100 is borrowed and the interest after 6 months is $8, what is the annual interest rate for a simple interest loan?\r<BR>\n" );
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document.write( "Rate = </SPAN>\n" );
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document.write( "Answer: <font color=red>16%</font>\r<BR>\n" );
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document.write( "Work Shown:<BR>\n" );
document.write( "i = P*r*t<BR>\n" );
document.write( "8 = 100*r*(6/12)<BR>\n" );
document.write( "8 = 100*r*(0.5)<BR>\n" );
document.write( "8 = 50r<BR>\n" );
document.write( "r = 8/50<BR>\n" );
document.write( "r = 16/100<BR>\n" );
document.write( "r = 0.16<BR>\n" );
document.write( "Move the decimal point two spots to the right to arrive at an annual simple interest rate of <font color=red>16%</font>\r<BR>\n" );
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document.write( "Take note how t = 6/12 = 0.5 since t is the number of years.<BR>\n" );
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