Lane French had a bad credit rating and went to a local cash center. He took out a $100 loan payable in two weeks at $115 (In other words, in two weeks he paid back a total of $115). What is the percent of interest paid on the loan? Do not round denominator before dividing
(115- 100)/100 = ?
15%
To find the percent of interest paid on the loan, we need to calculate the amount of interest paid and then express it as a percentage of the loan amount.
The loan amount is $100, and Lane paid back a total of $115. Therefore, the interest paid on the loan can be calculated by subtracting the loan amount from the total amount paid:
Interest paid = Total amount paid - Loan amount
Interest paid = $115 - $100
Interest paid = $15
Now, to find the percent of interest paid, divide the interest amount by the loan amount and multiply by 100:
Percent of interest paid = (Interest paid / Loan amount) * 100
Percent of interest paid = (15 / 100) * 100
Percent of interest paid = 15%
So, the percent of interest paid on the loan is 15%.