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OpenStudy (anonymous):
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 $1,000 in interest. If Mr. Wildcat is charging simple interest on his loan what is the annual interest rate? Is this correct? r=I/Pt 1000/(10000)(1/12)=0.83% or 1000=10000(x)(1/12) x=1.2 1.2*100= 120%
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