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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%

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Answers (2)
  1. 1 May, 03:16
    0
    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
  2. 1 May, 04:50
    0
    11% is the implied interest.
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Home » Business » 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.
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