You have agreed to borrow 50 and after six months pay back 58 What was the interest rate on the loan?

To find the interest rate on the loan, we can use the formula for simple interest:<br /><br />\[ i = p r t \]<br /><br />where:<br />- \( i \) is the interest earned,<br />- \( p \) is the principal amount (the initial amount of money borrowed),<br />- \( r \) is the interest rate (expressed as a decimal),<br />- \( t \) is the time the money is borrowed for (in years).<br /><br />In this case, the principal amount \( p \) is $50, the time \( t \) is 6 months (which is 0.5 years), and the total amount paid back is $58. Therefore, the interest earned \( i \) is $58 - $50 = $8.<br /><br />Substituting these values into the formula, we get:<br /><br />\[ 8 = 50 \cdot r \cdot 0.5 \]<br /><br />Solving for \( r \), we find that the interest rate is 0.32 or 32%. Therefore, the interest rate on the loan was 32%.