Question 762942
Difference: 28800 - 21200 = 7600



You must pay back $7,600 in interest (on top of the $21,200 principal)



Now divide by the original principal: 7600/21200 = 0.35849056603773 = 35.849% = 35.85%



This means that your loan has an effective interest rate of 35.85% (simple example: person A loans person B $100. Person B would then pay back person A $100 plus $35.85 in interest)


Edit: the other poster has a better solution since I forgot to factor in the fact that this was done over 6 years (not 1)