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? Express your answer as a percentage, not a decimal, but without the percent symbol. Round your answer to the nearest percentage point. Warning: the interest rate will be unbelievably high!

Respuesta :

Interest paid = $1250 - $880 = $370

One month interest = $370 

one year interest = 370 x 12 = $4400

[tex]\text {Annual Interest rate = } \dfrac{4400}{880} \times 100 [/tex]

[tex]\text {Annual Interest rate = } 500\% [/tex]