Answered

Welcome to Westonci.ca, your ultimate destination for finding answers to a wide range of questions from experts. Join our platform to connect with experts ready to provide precise answers to your questions in different areas. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

You have agreed to borrow $50 and after six months pay back $58. how much interest are you paying? what is the interest rate?

pls answer have to get this done by monday

Sagot :

sqdancefan

Answer:

  a) $8 interest

  b) 32% annual rate

Step-by-step explanation:

a)

The interest is the excess of the payment over the amount borrowed:

  $58 -50 = $8 . . . amount of interest

__

b)

The interest rate is the fraction of the original amount that is interest:

  8/50 = 16/100 = 16% . . . . 6-month rate

Usually, we express the rate as an annual rate, so we need to divide this percentage by the number of years. 6 months is 1/2 year, so ...

  r = 16%/(1/2) = 32% . . . . annual interest rate

_____

Additional comment

The amount of interest is computed using the formula ...

  I = Prt . . . . . P is the principal borrowed; r is the annual rate; t is the number of years

We can use this to find r, the annual rate:

  I/(Pt) = r . . . . . divide by the coefficient of r

  r = 8/(50·1/2) = 8/25 = 32/100 = 32% . . . . annual rate

Thanks for using our platform. We're always here to provide accurate and up-to-date answers to all your queries. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.