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High interest rate. Eddie wrote a $280 check to a check
holding company, which gave him $260 in cash. After two
weeks the company will cash his $280 check. Find the
annual simple interest rate for this loan. Note that the time
is a fraction of a year.

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P = $260
A = $280

I am assuming that there are 52 weeks in that year.

t = 2 weeks = 2/52 = 1/26 ...

Solution provided by:
Sandhya Sharma, MSc
Education
  • BSc, Meerut University
  • MSc, Meerut University
  • MPhil, Institute of Advanced Studies
  • MSc, AIT
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