SOLUTION: Thomas Ewing borrowed $100 from a loan company for 12 months. He signed a note to repay the loan at $10 per month. How much interest did he have to pay?

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Thomas Ewing borrowed $100 from a loan company for 12 months. He signed a note to repay the loan at $10 per month. How much interest did he have to pay?      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 1178835: Thomas Ewing borrowed $100 from a loan company for 12 months. He signed a note to repay the loan at $10 per month. How much interest did he have to pay?
Answer by ikleyn(52824) About Me  (Show Source):
You can put this solution on YOUR website!
.
Thomas Ewing borrowed $100 from a loan company for 12 months. He signed a note to repay the loan at $10 per month.
How much interest did he have to pay?
~~~~~~~~~~~~~~~~~~ 

He loaned $100,  and payed back 10*12 = 120 dollars.


Everything happened in one year, so the interest is $20  and  the percentage is


    %28%28120-100%29%2F100%29%2A100 = 20%  per year.      ANSWER

Solved.