Question

The PayDay loan company lends you $500. After 2 weeks pay you pay back $520. What is the simple interest rate? Note that the times is a fraction of a year.

Answer 1

Explanation:

• Loan Amount = $500

,

• Time = 2 weeks

,

• The amount paid pack = $520

We want to determine the simple interest rate.

First, find the amount paid as interest: