Question

Joshua borrowed $1000 from his friend and paid him back $1050 in six months. What simpleannual interest rate did Joshua pay his friend?(Be sure to use the percent symbol with your answer to represent the interest)

Answer 1

In 6 months, Joshua paid $50 of interest for the $1000 borrowed, so if the interest is simple in one year he is going to pay $100 of interest, which is 10% of the borrowed money.