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8 votes
8 votes
 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?

 patrick takes a textbook to a pawnshop to borrow some money and is given $30.00. Patrick-example-1
User Zhiwei Li
by
3.5k points

1 Answer

11 votes
11 votes

Answer:

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

User Yam Tal
by
3.1k points
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