Percentages are ratios of an amount compared to 100. The percent change of an old to new value is equal to 100% x \({ new - old \over old }\).
Frank loaned Alex $500 at an annual interest rate of 8%. If no payments are made, what is the interest owed on this loan at the end of the first year?
| $90 | |
| $77 | |
| $15 | |
| $40 |