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9 May, 02:40

You pawn a guitar and receive $880. One month later, you get the guitar back by paying $1250. If this is simple interest, then what annual interest rate did you pay?

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  1. 9 May, 02:42
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    Interest=1250-880=370

    I=PRT

    P=principal

    r=rate in deicmal

    t=time in years

    1 month so t=1/12

    P=880

    I=370

    370=880*r*1/12

    370=220/3r

    times both sides by 3

    1110=220r

    divdie both sides by 220

    5.04545=r

    505% interest
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