Question

you borrow $1000 from a friend and promise to pay back $1390 in 2 years. what simple interest rate, to the nearest tenth of a percent will you pay

Answer 1

@DanJS

Answer 2

I = PRT <-- our formula (Interest = Principle* Rate*Time)
The interest paid back was (1390 - 1000 = 390)
I = 390
P = 1000
T = 2
Now we sub
390 = 1000(R)(2)
390 = 2000R
390/2000 = R
0.195 = R
19.5% = R

Interest rate 19.5%

Answer 3

THANK YOU

Answer 4

glad to help :)