Question

Johnny Rockefeller had a bad credit rating and went to a local cash center. He took out a $100 loan payable in two weeks for $115. What is the percent of interest paid on this loan?

Answer 1

Johnny Rockefeller paid a 15% interest rate on his $100 loan, calculated by finding the simple interest ($15) and then dividing it by the principal and converting it to a percentage.

Step-by-step explanation:

The question is asking how to calculate the percent of interest paid on a short-term loan, where the principal amount is $100 and the amount due in two weeks is $115. To find the percent of interest, we first calculate the simple interest by subtracting the principal from the amount due:

$115 - $100 = $15

This $15 is the simple interest paid on the loan. Now, we need to find the interest rate. This can be done by dividing the interest by the principal and then multiplying by 100 to get the percentage:

($15 / $100) × 100 = 15%

Therefore, Johnny Rockefeller paid a 15% interest rate on his $100 loan.