You got a loan of 200 from bank X You are required to pay ba

You got a loan of $200 from bank X. You are required to pay back $200.20 in one week. What is the nominal annual interest rate?

Here the principal amount is the loan (P) = $200

Amount to be paid back (A) = $200.20

time (T) = 7/365 year

Let the nominal annual interest be R

In simple interest (S.I) we have, S.I =(P*R*T)/100 and A= P+ S.I.

Thus, S.I = 200.20-200 = 0.20

so, R= (0.20*100)/(200*(7/365)) = 20/3.84 = 5.20

The nominal annual interest rate is 5.20%