Question

Pablo borrowed $100,000 to start a business. 5 years later, he repaid the $100,000, plus $9,375 interest. What was the rate of interest?

Answer 1

Given:

Pablo borrowed $100,000 to start a business. 5 years later, he repaid the $100,000, plus $9,375 interest.

Here

`\begin{gathered} P=100000 \\ t=5year \\ I=9375 \end{gathered}`

Required:

To find the interest rate.

Step-by-step explanation:

Here

`r=(I)/(Pt)`
`\begin{gathered} r=(9375)/((100000)*5) \\ \\ r=1.875\% \end{gathered}`

Final Answer:

1.875%