SOLUTION: A loan of $940 was repaid at the end of 18 months with a check for $970. What annual rate of interest was charged?

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Question 1073332: A loan of $940 was repaid at the end of 18 months with a check for $970. What annual rate of interest was charged?
Answer by addingup(3677) About Me  (Show Source):
You can put this solution on YOUR website!
Calculate ANNUAL rate. 1 year = 12 months. 18/12 = 1.5, so 18 months = 1.5 years
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970 = 940(1+(x*1.5))use your calculator, you should get 0.0213 = 2.13%