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

Spicy

31 August, 15:24

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Answers (2)

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Fernanda Escobar · Answer 1

25%

250=200 (1+r)

250/200 = 1+r

5/4 - 1 = r

r = 0.25 = 25%

Leila · Answer 2

Twenty five percent interest rate

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