Question

 patrick takes a textbook to a pawnshop to borrow some money and is given $30.00. Patrick must pay back the $30.00 in addition to a $12.50 fee in 6 months.

What simple interest rate is he being charged?

Answer 1

here,

simple interest (S)=12.50$

Principal(p)=30.00$

time(t)=0.5 year

Now,

S=PTR/100

or,12.50=30×0.5×R/100

or,1250=15R

or,1250/15=R

:.R=83.33% per annum