David needed money for some unexpected expenses, so he borrowed $3,695.17 from a friend and agreed to repay the loan in five equal installments of $950 at the end of each year. The agreement is offering an implied interest rate of. A) 14.85%

B) 9.57%

C) 11.00%

D) 12.98%

Question

Business

Victoria Hicks

1 May, 03:09

David needed money for some unexpected expenses, so he borrowed $3,695.17 from a friend and agreed to repay the loan in five equal installments of $950 at the end of each year. The agreement is offering an implied interest rate of. A) 14.85%

B) 9.57%

C) 11.00%

D) 12.98%

+5

Answers (2)

Know the Answer?

Isai Jones · Answer 1

5.71% annually and 28.55% for the five years

Explanation:

The total repayment is 950*5 = 4750

This shows the total interest as 4750-3695.17=1054.83

the implies 28.55 % of the principal amount

Jadiel Robles · Answer 2

Jadiel Robles 1 May, 04:50

0

11% is the implied interest.

David needed money for some unexpected expenses, so he borrowed $3,695.17 from a friend and agreed to repay the loan in five equal installments of $950 at the end of each year. The agreement is offering an implied interest rate of. A) 14.85%B) 9.57%C) 11.00%D) 12.98%

David needed money for some unexpected expenses, so he borrowed $3,695.17 from a friend and agreed to repay the loan in five equal installments of $950 at the end of each year. The agreement is offering an implied interest rate of. A) 14.85%

B) 9.57%

C) 11.00%

D) 12.98%