Answer:
1.41 %
Step-by-step explanation:
Principal amount (P) = $500
Time (T) = 2 weeks = 2 * 7 days = 14 days
Interest = $80
So,
Interest = P*T*[tex]\frac{R}{100}[/tex]
=> 80 = 500 * 14 * [tex]\frac{R}{100}[/tex]
=> 80 = 7000 * [tex]\frac{R}{100}[/tex]
Flip the sides of the equation
7000 * [tex]\frac{R}{100}[/tex] = 80
Multiply both sides by 100
7000 * [tex]\frac{R}{100}[/tex] * 100 = 80 * 100
Cancel out the 100's on the top and bottom from the left side
7000 * R = 8000
Divide both sides by 7000
[tex]\frac{7000*R}{7000}[/tex] = [tex]\frac{8000}{7000}[/tex]
Cancel out the 7000's on the top and bottom from the left side
R = 1.41 %
So, the periodic interest rate of the loan = 1.41 %
