Question

Suppose that you borrow $3000.00 from a friend and promise to pay back $4935.00 in 3 years. What simple interest rate will you pay? The simple interest rate is % (Round to the nearest tenth as needed.)​

Answer 1

the simple interest rate is 18.00%

Explanation:

The computation of the simple interest rate is shown below:

Amount = Principal × (1 + rate)^years

$4,935 = $3,000 × (1 + rate)^3

After solving it, the rate of percentage is 18.00%

Hence, the simple interest rate is 18.00%