SOLUTION: Tristan Sandino had a bad credit rating and went to a local cash center. He took out a $100 loan payable in two weeks at $113.50. What is the percent of interest paid on this loan?
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Question 1110701: Tristan Sandino had a bad credit rating and went to a local cash center. He took out a $100 loan payable in two weeks at $113.50. What is the percent of interest paid on this loan? (Do not round intermediate calculations. Round your answer to the nearest whole percent.) Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! Tristan Sandino had a bad credit rating and went to a local cash center. He took out a $100 loan payable in two weeks at $113.50. What is the percent of interest paid on this loan? (Do not round intermediate calculations. Round your answer to the nearest whole percent.)
A(t) = P(1+rt)
113.5 = 100(1+i(2/52))
1.135 = 1+(2/52)i
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0.135 = (1/26)i
i = 26*0.135
interest rate = 35.1 = 351%
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Cheers,
Stan H.
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