Question

Find the interest rate for a principal of $5305 and charged $39534 in interest for 20 years

Answer 1

Answer: 10.56 or 10.6 %

Step-by-step explanation:

5305 x x^20 = 39534

39534/5305 = x^20

20√39534/5305 = x

x = 1.1056

1.1056 x 100 = 110.56

110.56 - 100 = 10.56 or 10.6

Answer 2

37.237%

Explanation:

Use the Formula I = P x R x T

P = Principal amount (the beginning balance).

R = Interest rate (usually per year, expressed as a decimal).

T = Number of time periods (generally one-year time periods).

Plug in the values

I = 5305 x R x 20

Solve for R by dividing 20 by 5305

I=5305 x R x 20

20 / 5305 = 0.0037