Question

Sebastian's parents agree to lend him 200 for some gaming equipment, as long as he pays them back 250 in a year's time. What is the rate of simple annual interest in this arrangement?

Answer 1

Simple interest =

P*I*N where P= Original amount borrowed, I = interest rate and N = the amount of years

Answer 2

K then. The interest is 50 dollars, cause that's what's he paying extra, and $50 is 25% of 200. That's what I believe it is.

Answer 3

\[50=200*I*1\]

Answer 4

yeah i did compound interest... i'm not really into the economic math

Answer 5

so its 50%

Answer 6

I=50/200

Answer 7

No. @trisha30 50/200=1/4 so it's 25%

Answer 8

alright thanks

Answer 9

No prob.