Final answer:
The rate of interest charged by Amisha's friend on the loan is approximately 122.77%.
Step-by-step explanation:
To find the rate of interest charged by Amisha's friend, we can use the simple interest formula:
Interest = Principal × Rate × Time
In this case, the principal (loan amount) is $650, the interest is $797 (total repayment - loan amount), and the time is 1 year. Rearranging the formula, we get:
Rate = Interest / (Principal × Time)
Substituting the given values, we find:
Rate = $797 / ($650 × 1)
Rate = $797 / $650
Rate ≈ 1.2277
Therefore, the rate of interest charged by Amisha's friend on the loan is approximately 122.77%.