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soldi70 [24.7K]
3 years ago
14

Your friend tells you that if you let her keep 2020 of your Pokemon cards for three months, she will give you 22 cards extra whe

n she returns your cards to you. What is the annual rate of interest she is willing to pay for the borrowed cards?
Mathematics
1 answer:
Dmitrij [34]3 years ago
8 0

Answer: 40 %

Step-by-step explanation:

Let the amount of one card = x

Hence, the value of 20 cards ( Principal amount ) = 20x

And, the value of 22 cards ( Total amount after 3 month ) = 22x

⇒ Total interest in 3 month = 22x - 20x =2x

Let the annual interest rate = r %

\frac{20x\times r\times 3/12}{100}=2 x ( By the formula of simple interest rate )

\implies \frac{10\times r\times 1/4}{100}=1

\implies \frac{10r}{400}=1

\implies 10r=400

\implies r=40\%

Hence, the annual rate of interest = 40%

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