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You borrow $200 from a friend. You repay the loan in 2 weeks and agree to pay $8 for interest. What is the annual percentage rate? Round your answer to the nearest tenth of a percent

User Danlei
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It is given that Borrowed money= is $200, Interest= is $8, and Time =2 weeks.

We need to find the annual percentage rate.


2\text{ we}eks=14\text{ days}
1\text{ year=365 days}
\text{Time =}(14)/(365)\text{ days}

Recall the formula for the simple interest formula


Simple\text{ interest}=P*(r)/(100)* t

Substitute P=$200, simple interest=$8, and t=14/365, we get


8=200*(r)/(100)*(14)/(365)


8=0.767* r


(8)/(0.767)=r


r=10.43\text{ \%}

Hence the annual interest is 10.4 %.

User Fatemeh Karimi
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