SOLUTION: You borrow $860 from your brother and agree to pay back $940 in 18 months. What simple interest rate will you pay?

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Question 1181214: You borrow $860 from your brother and agree to pay back $940 in 18 months. What simple interest rate will you pay?
Answer by ikleyn(52750) About Me  (Show Source):
You can put this solution on YOUR website!
.

The simple interest rate is  %28940-860%29%2F%281.5%2A860%29 =   0.0620 (rounded) = 6.2% annually.    ANSWER


In this solution,  the factor  1.5  represents 18 months = 1.5 years.

Learn how to solve such simple problems in one line.

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To see many other similar  (and different)  solved problems on simple interest accounts,  look into the lesson
    - Simple interest percentage problems
in this site.


Learn the subject from there.