SOLUTION: You borrow $5300 from a friend and promise to pay back $7100 in two years. What simple interest rate will you pay?

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Question 608477: You borrow $5300 from a friend and promise to pay back $7100 in two years. What simple interest rate will you pay?
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
You borrow $5300 from a friend and promise to pay back $7100 in two years. What simple interest rate will you pay?
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A(t) = P(1+rt)
7100 = 5300(1+2r)
1.3396 = 1 + 2r
2r = 0.3396
rate = 0.1698 = 16.98%
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Cheers,
Stan H