Question

Suppose that you want to borrow $1000 from your parents for a deposit on a new apartment. You promised your parents that you would pay them back six months from today. On top of the $1000 repayment, you will pay them an additional $100 for interest six months from now. What is the period rate

Answer 1

Period rate is 10%.

The periodic rate equals the annual interest rate divided by the number of periods.

Step-by-step explanation:

Period rate= Additional interest rate / repayment

=100/1000=10%