SOLUTION: Suppose you borrow $10,000 right now to start a business. If the terms of the loan require you to pay back $12,000 in 5 years, what is the implied annual compound interest rate?

Question 1124066: Suppose you borrow $10,000 right now to start a business. If the terms of the loan require you to pay back $12,000 in 5 years, what is the implied annual compound interest rate?
Answer by Alex.33(110) (Show Source): You can put this solution on YOUR website!
Ny definition of compound interest:

,or
,approximately.

If you still do not understand or feel a bit vague on this, go search for 'compound interest' online. You'll find super clear explanations written by true experts.

Hope this solves your problem. Thanks!
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