Nestor borrows $10,000 from the shady loan shark, Mr. Wildcat. Mr. Wildcat tells him he must repay the loan in 1 month and pay an additional $1000 in interest. If Mr. Wildcat is charging simple interest on his loan, what is the annual interest rate?

Question

anonymous · Answer

@Calcmathlete help? :)

anonymous · Answer

r=I/Pt
1000/(10,000)(1)=0.1

is that right or wrong? (any of it lol)

anonymous · Answer

I = Prt
1000 = 10000(x)(1/12)
THis answer is the decimal value, so multiply it by 100 to get the percent value.

anonymous · Answer

1.2000048 thats what i got?

anonymous · Answer

It's just 1.2. Still, I believe that you got it.

anonymous · Answer

do i multiply 1.2 by 100 now?

anonymous · Answer

If you want the percentage value, yes.

anonymous · Answer

120%? that doesn't make sense to me...

anonymous · Answer

That's what I got, but I believe it works because to pay the lone is 1 month, the time part of the formula is 1/12.

anonymous · Answer

okay thanks.

anonymous · Answer

np :)