Lane French had a bad credit rating and went to a local cash center. He took out a $100.00 loan payable in two weeks at $102.50. What is the percent of interest paid on this loan? (Do not round intermediate calculations. Round your answer to the nearest whole percent.)

100(r)(2/52) = 2.50

r = (2.5/100)(52/2)
= .65
= 65%

The equivalent annual rate is 65%

(In the middle ages they would have been burned at the stake for usury.)

To calculate the percent of interest paid on this loan, we need to find the difference between the amount borrowed and the total amount to be repaid, and then calculate the percentage of that difference.

First, let's find the difference between the total amount to be repaid and the amount borrowed:

Total amount to be repaid = $102.50
Amount borrowed = $100.00

Difference = Total amount to be repaid - Amount borrowed
Difference = $102.50 - $100.00
Difference = $2.50

Now, let's calculate the percentage of that difference:

Interest paid = (Difference / Amount borrowed) * 100
Interest paid = ($2.50 / $100.00) * 100
Interest paid = 2.5%

Rounded to the nearest whole percent, the percent of interest paid on this loan is 3%.