Question

If you borrowed $100 for one year And paid $110 at maturity, the interest rate youpaid would be 10 percent.

T or f

Answer 1

True

Step-by-step explanation:

Interest rate is calculated by the formula

I= P x r x t

In this case,

Interest = 10( amount - principal; $110 - $100= $10

P= $100

r ?

t=1

Therefore,

$10 = $100 x r x 1

$10 = $100r

r= $100/$10

r= 10%