You have agreed to loan some money to a friend at a simple interest rate of 125% per year. Your friendhasn't taken this class; all they know is that they can pay you back $500 in 4 weeks. How much money doyou give your friend today so that the repayment of $500 in 4 weeks is equivalent to a simple interest loan with a rate of 125% per year? Round your answer to the nearest dollar.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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You have agreed to loan some money to a friend at a simple interest rate of 125% per year. Your friendhasn't taken this class; all they know is that they can pay you back $500 in 4 weeks. How much money doyou give your friend today so that the repayment of $500 in 4 weeks is equivalent to a simple interest loan

with a rate of 125% per year? Round your answer to the nearest dollar. 

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