Answer:
You are charging 13.5% annual percentage rate to your friend .
Step-by-step explanation:
Principal = $100
Amount = $109
Time = 8 months
12 months = 1 year
1 month = [tex]\frac{1}{12} year[/tex]
8 months = [tex]\frac{8}{12} year[/tex]
So, Time = [tex]\frac{8}{12} year[/tex]
SI = Amount - Principal = $109-$100=$9
Formula : [tex]SI =\frac{P \times R \times T}{100}[/tex]
[tex]9=\frac{100 \times R \times \frac{8}{12}}{100}[/tex]
[tex]13.5\%=R[/tex]
Hence you are charging 13.5% annual percentage rate to your friend .
