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

Do I use the formula 
A=P(1+rt)

tkhunny · Answer

Part of it.  You have this:

P = 10000
t = 1/12
A = 10000 + 1000 = 11000

You have only to solve for 'r'.

anonymous · Answer

ok awesome! that is what I thought!

anonymous · Answer

so would my answer be 120%

tkhunny · Answer

That's why it's "Shady Loan Shark" and not "Polite and Legal Banker"!  Yikes.

anonymous · Answer

lol thanks!