MNTotoro MNTotoro

02-03-2017
Mathematics

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Sebastian's parents agree to lend him two hundred dollars for some gaming equipment, as long as he pays them back two hundred fifty dollars in a year's time. What is the rate of simple annual interest in this arrangement?

five percent

twenty percent

twenty−five percent

fifty percent

Respuesta :

ehsmccurdy00 ehsmccurdy00

02-03-2017

Twenty five percent interest rate

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alimatar23 alimatar23

02-03-2017

25%
250=200(1+r)
250/200= 1+r
5/4 - 1= r
r= 0.25= 25%

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