. Joseph 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

looks like 10% a month
for the year? maybe 120 % if he has to pay that every month

anonymous · Answer

I need to know how you get the 120%
I got the 10%

anonymous · Answer

@satellite73

anonymous · Answer

Simple interest is I=PRT. I=1000$ amount of interest, P = 10000$ principal amount. T=1/12 of a year (one month).

anonymous · Answer

Solve for R.

anonymous · Answer

1000/10000x100=10%
.10x12=1.2x100=120?

anonymous · Answer

@CliffSedge

anonymous · Answer

nevermind I got it thanks so much @CliffSedge and @satellite73