He took out a $100.00 loan payable in two weeks at $105.50. What is the percent of interest paid on this loan?
paid 5.50 dollars for 100 dollars
that is 100(5.50/100) = 5.5 percent in two weeks or 2.75 percent per week
2.75 * 52 = 143 percent per year.
Which is huge!
To find the percent of interest paid on the loan, we need to calculate the interest amount first.
The loan amount was $100.00, and it is being paid back with $105.50.
Therefore, the interest amount is $105.50 - $100.00 = $5.50.
To calculate the percent of interest paid, we divide the interest amount by the loan amount and then multiply by 100.
Interest paid percentage = (Interest amount / Loan amount) x 100
Interest paid percentage = ($5.50 / $100.00) x 100 = 5.5%
The percent of interest paid on this loan is 5.5%.
To find the percent of interest paid on the loan, we need to calculate the difference between the amount repaid and the original loan amount, and then express it as a percentage of the original loan.
Here's how you can calculate it step by step:
1. Calculate the interest paid: Subtract the original loan amount from the amount repaid. In this case, the amount repaid is $105.50 and the loan amount is $100.00, so the interest paid is $105.50 - $100.00 = $5.50.
2. Calculate the interest rate: Divide the interest paid by the original loan amount, and then multiply by 100 to obtain a percentage. In this case, the interest rate is ($5.50 / $100.00) * 100 = 5.5%.
Therefore, the percent of interest paid on this loan is 5.5%.