2 simple interest questions

israel1machorro

New member
Joined
Mar 10, 2015
Messages
2
Q1: You hock your bicycle to the pawn shop for $120. The pawn shop will charge you $20 fee for holding the bicycle, when you come to get the bicycle back.

1. if you consider the fee as simple interest, what is the interest rate if you comeback in 2 months

Q2: A different pawn shop will give you $150 for your bicycle, but charges $15 per month fee.

1. if you consider the fee as simple interest, what is the interest rate if you comeback in 2 months.


***Basically these two questions will help me solve the rest of the practice questions. which numbers I plug in to the formula?***
 
Q1: You hock your bicycle to the pawn shop for $120. The pawn shop will charge you $20 fee for holding the bicycle, when you come to get the bicycle back.

1. if you consider the fee as simple interest, what is the interest rate if you comeback in 2 months

Q2: A different pawn shop will give you $150 for your bicycle, but charges $15 per month fee.

1. if you consider the fee as simple interest, what is the interest rate if you comeback in 2 months.


***Basically these two questions will help me solve the rest of the practice questions. which numbers I plug in to the formula?***
What have you tried? Show us what you have done so far so we will know where to help. Read the "Read Before Posting"
http://www.freemathhelp.com/forum/threads/77972-Read-Before-Posting!!
for the 'rules'
 
Q1: You hock your bicycle to the pawn shop for $120. The pawn shop will charge you $20 fee for holding the bicycle, when you come to get the bicycle back.

1. if you consider the fee as simple interest, what is the interest rate if you comeback in 2 months

Q2: A different pawn shop will give you $150 for your bicycle, but charges $15 per month fee.

1. if you consider the fee as simple interest, what is the interest rate if you comeback in 2 months.


***Basically these two questions will help me solve the rest of the practice questions. which numbers I plug in to the formula?***
What is "the formula" they've given you? What are the definitions of the variables in that formula? How do you think the exercise's information might relate to those definitions? ;)
 
Q1: You hock your bicycle to the pawn shop for $120. The pawn shop will charge you $20 fee for holding the bicycle, when you come to get the bicycle back.

1. if you consider the fee as simple interest, what is the interest rate if you comeback in 2 months

Code:
120 = 140 / (1+60/360i)
120(1+i/6) = 140
1+i/6 = 140/120
i/6 = 7/6-1
i/6 = 1/6
i = 6/6
i = 1
i=100%


Q2: A different pawn shop will give you $150 for your bicycle, but charges $15 per month fee.

1. if you consider the fee as simple interest, what is the interest rate if you comeback in 2 months.

Code:
150 = 180 / (1+60/360i)
150(1+i/6) = 180
1+i/6 = 180/150
1+i/6 = 6/5
i/6 = 6/5-1
i/6 = 1/5
i = 6/5
i = 1.2
i=120%
 
Top