SOLUTION: If a business borrows $20,000 and repays $30,600 in 4 years, what is the simple interest rate?

Algebra ->  Finance -> SOLUTION: If a business borrows $20,000 and repays $30,600 in 4 years, what is the simple interest rate?      Log On


   

Question 476508: If a business borrows $20,000 and repays $30,600 in 4 years, what is the simple interest rate?
Answer by robertb(5830) About Me  (Show Source):
You can put this solution on YOUR website!
The interest is 30,600 - 20,000 = 10,600
==> 10,600 = 20,000*r*4
==> 10,600 = 80,000r
==> r = 0.1325
simple interest rate is 13.25%.