Bobby took out a single loan for $500 and paid a $50Bobby took out a single loan for $500 and paid a $50 fee. His loan is due in 1 week. Find the effective interest rate on the loan Bobby took out. Round the answer to one decimal place. Fee. His loan is due in 1 week. Find the effective interest rate on the loan Bobby took out. Round the answer to one decimal place.

10.0% is the effective interest rate on the loan of $500 taken for a week

Step-by-step explanation:

Effective interest on the single loan that Bobby took out is the actual interest paid, the fee compared to the amount of loan taken out,

Effective interest = fee/loan amount

fee paid is $50

the loan amount is $500

effective interest on loan = $50/$500=10.0%

The actual interest rate paid on the one week loan amount rounded to one decimal place is 10.0%