Question 7 4 pts 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? write as a percentage.

650.2%

Step-by-step explanation:

We have to calculate annual interest rate by this formula :

A = P( 1 + rt )

A = Future value of loan ( $851 )

P = Principal amount ( $552 )

r = Rate of interest

t = Time in years

As we know,  1 year = 12 months . By converting 1 month to year we get

1 month = year = 0.0833 year

Now we put the values in the formula

$851 = $552( 1 + r × 0.0833 )

=

= 1.5417 = 1 + 0.0833r

= 1.5417 - 1 = 0.0833r

= 0.5417 = 0.0833r

r = 6.502

r is in decimal form so we have to multiply with 100 to convert the  value in percentage.

6.502 × 100 = 650.2%

The annual interest rate that you pay is 650.2%

89

step-by-step explanation: