Answer:
10.0% is the effective interest rate on the loan of $500 taken for a week
Explanation:
Effective interest on the single loan that Bobby took out is the actual interest paid,the fee compared to the amount of loan taken out,
Effective interest =fee/loan amount
fee paid is $50
the loan amount is $500
effective interest on loan =$50/$500=10.0%
The actual interest rate paid on the one week loan amount rounded to one decimal place is 10.0%