Question

To borrow​ money, you pawn your guitar. Based on the value of the​ guitar, the pawnbroker loans you ​$1080. One month​ later, you get the guitar back by paying the pawnbroker ​$1472. What annual interest rate did you​ pay?

Answer 1

The annual rate interest: r = 640.2%

Answer 2

The annual rate must 36% The guy didn’t wait a whole year to get his guitar back he waited a month.