lane french had a bad credit rating and went to a local cash center. he took out a $119 loan payable in five weeks at $129. what is the percent of interest paid on this loan?
Interest = $129-119=$10
Principal = $119
Period = 5 weeks
Interest rate
=(10/119)*(52 weeks/5 weeks)
=87.4%
To find the percentage of interest paid on a loan, you need to calculate the difference between the amount borrowed and the amount repaid, then divide it by the amount borrowed, and finally multiply it by 100 to get the percentage.
In this case:
Amount borrowed (loan) = $119
Amount repaid = $129
Step 1: Calculate the difference between the amount repaid and the amount borrowed:
$129 - $119 = $10
Step 2: Divide the difference by the amount borrowed:
$10 / $119 = 0.084
Step 3: Multiply the result by 100 to get the percentage:
0.084 * 100 = 8.4%
Therefore, Lane French paid 8.4% interest on this loan.