Johnny Rockefeller had a bad credit rating and went to a local cash center. He took out a $100.00 loan payable in two weeks for $112.00. What is the percent of interest paid on this loan?

Note: Do not round intermediate calculations. Round your answer to the nearest whole percent.

To find the percentage of interest paid on Johnny Rockefeller's loan, we can use the formula for simple interest rate:

\[
\text{Interest Rate (\%)} = \left( \frac{\text{Interest Paid}}{\text{Principal}} \right) \times 100
\]

### Step 1: Determine the interest paid.
- Principal (amount of the loan): \$100.00
- Total amount to be repaid: \$112.00
- Interest paid = \$112.00 - \$100.00 = \$12.00

### Step 2: Calculate the interest rate.
Using the formula:

\[
\text{Interest Rate (\%)} = \left( \frac{12}{100} \right) \times 100 = 12\%
\]

Thus, the percentage of interest paid on the loan is **12%**.

Would you like further clarification, or have any questions about the solution?

Here are 5 related questions to consider:
1. What is the difference between simple and compound interest?
2. How does the time period affect the interest rate calculation?
3. What would happen if Johnny missed the repayment deadline?
4. How can Johnny improve his credit rating to get better loan terms?
5. How does interest compounding affect the overall cost of a loan?

**Tip:** Always review loan terms carefully, as even short-term loans can have high effective interest rates when considered annually!

Johnny Rockefeller had a bad credit rating and went to a local cash center. He took out a $100.00 loan payable in two weeks for $112.00. What is the percent of interest paid on this loan?

Calculate the simple interest rate on Johnny Rockefeller's $100.00 loan, where he repaid $112.00 after two weeks. Learn how to compute the percentage of interest paid using basic interest rate formulas. This problem focuses on percentage calculation and simple interest, suitable for Grades 6-8 students.

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