Question

You have agreed to loan some money to a friend at a simple interest rate of 200% which is outrageous

but still about half of the payday loan places! To make it easy on your friend who needs a $850 loan to
tide him over for a bit you tell him to pay you back $900 in a few weeks.
In how many weeks should you tell him to pay you back if you want to hold that interest rate of 200%?

Answer 1

To find the number of weeks, we need to divide the interest amount ($900 - $850 = $50) by the interest rate. To convert the interest rate to a decimal, we need to divide it by 100, so 200% ÷ 100 = 2. The number of weeks can then be calculated as:

$50 ÷ ($850 x 2) = $50 ÷ $1700 = 0.029411765

To find the number of weeks, we need to take the reciprocal of this value, which is approximately 34.15 weeks.