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

Question

Billy

4 July, 07:06

+1

Answers (2)

Know the Answer?

Sullivan Bryant · Answer 1

Sullivan Bryant 4 July, 07:27

0

Twenty five percent interest rate

Skylar Sampson · Answer 2

25%

250=200 (1+r)

250/200 = 1+r

5/4 - 1 = r

r = 0.25 = 25%

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 percenttwenty percenttwenty-five percentfifty percent