Question

You lend $240 to your friend. He pays you back $30 in interest in one year. What interest

rate did you charge your friend?

Answer 1

Answer: 12.50%

Step-by-step explanation: Lets use an equation find the the interest rate.

30 = p x 240

30/240 = p x 240/240

0.125 = p

Multiply 0.125 by 100 to get the interest rate. 0.125 x 100 = 12.5

12.5% = p