Suppose that you lent $100 to a friend and he or she paid you back one year later. What was the cost of lending your friend this

Question

Paraphin [41]

4 years ago

15

Suppose that you lent $100 to a friend and he or she paid you back one year later. What was the cost of lending your friend this

money ?

History

1 answer:

Snezhnost [94] · Answer 1 · 2022-01-11T08:10:36+03:00

Snezhnost [94]4 years ago

5 0

The interest rate is the amount of the interest expressed as a percentage of the principal. Thus, if someone lends you $100 and you agree to repay him $110 a year later, the interest rate is 10%, which equals the interest divided by the principal, or ($110-$100)/$100.