SOLUTION: This is a second submittal for the first problem. Adding the second problem in this submittal. 1. Thomas Ewing borrowed $100 from a loan company for 12 months. He signed a no

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Question 1178837: This is a second submittal for the first problem. Adding the second problem in this submittal.
1. 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?
2. What was the approximate rate of interest Mr. Ewing was charged for the loan?
Answer by ikleyn(52802) About Me  (Show Source):
You can put this solution on YOUR website!
.

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.