Question

You have agreed to borrow $50 and after six months pay back $58. how much interest are you paying? what is the interest rate?

pls answer have to get this done by monday

Answer 1

To find the amount of interest, subtract the original amount borrowed from the amount paid back. The interest rate can be calculated using the formula Interest = Principal x Rate x Time.

Step-by-step explanation:

To find the amount of interest and the interest rate, we can subtract the original amount borrowed from the amount paid back after six months. In this case, $58 - $50 = $8. So, you are paying $8 in interest.

To find the interest rate, we can use the formula:

Interest = Principal x Rate x Time

Plugging in the values we have:

$8 = $50 x Rate x 0.5

Solving for the rate:

Rate = $8 / (($50 x 0.5)

Rate = $8 / $25

Rate = 0.32 or 32%

Answer 2

a) $8 interest

b) 32% annual rate

Step-by-step explanation:

a)

The interest is the excess of the payment over the amount borrowed:

$58 -50 = $8 . . . amount of interest

__

b)

The interest rate is the fraction of the original amount that is interest:

8/50 = 16/100 = 16% . . . . 6-month rate

Usually, we express the rate as an annual rate, so we need to divide this percentage by the number of years. 6 months is 1/2 year, so ...

r = 16%/(1/2) = 32% . . . . annual interest rate

_____

Additional comment

The amount of interest is computed using the formula ...

I = Prt . . . . . P is the principal borrowed; r is the annual rate; t is the number of years

We can use this to find r, the annual rate:

I/(Pt) = r . . . . . divide by the coefficient of r

r = 8/(50·1/2) = 8/25 = 32/100 = 32% . . . . annual rate