To borrow money, you pawn your mountain bike. Based on the value of the bike, the pawnbroker loans you $552. One month later, you get the bike back by paying the pawnbroker $851. What annual interest rate did you pay?

Hrefnui9

Hrefnui9

Answered question

2022-09-11

To borrow money, you pawn your mountain bike. Based on the value of the bike, the pawnbroker loans you $552. One month later, you get the bike back by paying the pawnbroker $851. What annual interest rate did you pay?

Answer & Explanation

William Collins

William Collins

Beginner2022-09-12Added 12 answers

Solution:
P = $ 552 A = $ 851 T = 1  month A = P ( 1 + r 100 ) h t 851 552 = 1 + r 1200 851 552 1 = r 1200 r = 1200 ( 851 552 1 ) r = 650 % = 6.50

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