SOLUTION: You take out a 1-year, $5,000 loan at 8% simple annual interest. The lender charges you a $250 fee. Thinking of the fee as additional interest, what is the actual annual interest r

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Question 666370: You take out a 1-year, $5,000 loan at 8% simple annual interest. The lender charges you a $250 fee. Thinking of the fee as additional interest, what is the actual annual interest rate r you will pay?
Answer by rfer(16322) About Me  (Show Source):
You can put this solution on YOUR website!
250/5000=0.05=5%
0.08+0.05=0.13=13%