SOLUTION: if you borrow $500 for 3 months and paid $12.50 interest, what would the annual rate of interest be?

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Question 327875: if you borrow $500 for 3 months and paid $12.50 interest, what would the annual rate of interest be?
Answer by Fombitz(32388) About Me  (Show Source):
You can put this solution on YOUR website!
Annualize the interest you paid 4%2812.50%29=50
i=50%2F500=0.1
You were paying 10% interest.