You borrow $3000 from a friend and promise to pay back $6150 in 5 years. What simple interest rate, to the nearest tenth of a percent, will you pay?

Question

Mathematics

Oakley

28 October, 14:26

You borrow $3000 from a friend and promise to pay back $6150 in 5 years. What simple interest rate, to the nearest tenth of a percent, will you pay?

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Answers (1)

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Haylee Carpenter · Answer 1

R = (1/T) (A/P - 1)

P = $3000

T = 5

A = $6150

R = (1/5) x (($6150/$3000) - 1) = 0.21

R = 0.21 x 100

R = 21% per year

Aka your answer should be 21%