a man pawns his watch for $75.00. He goes back 14 days later and picks it up and pays $80.25. what is the annusl percentage rate he paid?

Question

Need to know how to solve the question asked.

Answer 1

i = p · r · t, where i = interest, p = principal, r = rate, t = time (in years)

 

80.25 - 75 = 75 · r · (14/365)

5.25 = 75 · r · (14/365)

0.07 = r · (14/365)

25.55 = 14r

1.825 = r

 

The annual rate is 182.5%