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

Algebra ->  Equations -> 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      Log On


   

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) About Me  (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%.