Algebra.Com's Answer #835198 by ikleyn(52786)![\"\"](\"/images/stars/stars-13.gif\")  
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document.write( "The Sharky Finance Ltd. has agreed to provide a loan to Meena on a “four-for-five” monthly basis.
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document.write( "That is, for every $4 Meena borrows today, she has to repay a total of $5 a month later.
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document.write( "What is the true yearly rate of this loan?
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document.write( "Let A be the loaned amount.\r\n" );
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document.write( "In one month later, Meena re-paid  and completed the loan, in full.\r\n" );
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document.write( "So we write the formula for the simple interest amount of one month duration\r\n" );
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document.write( "  =  ,\r\n" );
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document.write( "where \"i\" is the annual interest rate, presented as decimal.\r\n" );
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document.write( "We simplify this equation step by step and find \" i \", which is the major unknown value\r\n" );
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document.write( "  =  \r\n" );
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document.write( "  =  \r\n" );
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document.write( " i =  = 3.\r\n" );
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document.write( "ANSWER. The annual interest rate is 3, or 300%.\r\n" );
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document.write( "Solved.\r
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