Question 1200964
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The Sharky Finance Ltd. has agreed to provide a loan to Meena on a “four-for-five” monthly basis. 
That is, for every $4 Meena borrows today, she has to repay a total of $5 a month later. 
What is the true yearly rate of this loan?
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Let A be the loaned amount.


In one month later, Meena re-paid  {{{(5/4)*A}}}  and completed the loan, in full.


So we write the formula for the simple interest amount of one month duration

    {{{(5/4)A}}} = {{{A*(1+(i/12))}}},


where "i" is the annual interest rate, presented as decimal.


We simplify this equation step by step and find " i ", which is the major unknown value

    {{{5/4}}} = {{{1 + (i/12))}}}

    {{{1/4}}} = {{{i/12}}}

    i = {{{12/4}}} = 3.


<U>ANSWER</U>.  The annual interest rate is  3,  or  300%.
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Solved.