You have agreed to loan some money to a friend at a simple interest rate of $125\%$ per year. Your friend hasn't taken this class; all they know is that they can pay you back $$500$ in $5$ weeks.

How much money do you give your friend today so that the repayment of $$500$ in $5$ weeks is equivalent to a simple interest loan with a rate of $125\%$ per year? Round your answer to the nearest dollar.

Answer rating: 100% (QA)

Solution To calculate the amount of money you should give to your friend today ... View the full answer