Question 70 / 96:  Justin forgot his lunch money at home. To make matters worse, it was pizza day at school, and Justin loves pizza. However, his friend, Vraj,

always has money, so Justin asks if he can borrow $2.00. Vraj agrees, but insists upon being paid back $2.50 the next day. Calculate the (daily) interest rate of Vraj's loan.

Answer: 

25%.

[50 cents in interest divided by the original amount of $2 = 25%.]

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explain the basic method of power of power rule under indices.
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Capitalism: The Market Economy

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Attribution:  Dr. Robert P. Murphy, Lessons for the Young Economist. (Mises Institute), http://mises.org/document/6215/Lessons-for-the-Young-Economist (Accessed 04 April, 2014). License: Creative Commons BY
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