Question

If you loan $500 to a friend for 6 months and charge $50 total

in interest, what is the annual simple interest rate?

Answer 1

Explanation:

S=(P×R×T)÷100

R=(100×S)÷P×T, given that S= simple interest, P=principal amount,T=time and R=rate.

R=(100×50)÷500×6

R=1.67