Question 1181796

Shane borrowed $1000 on a 5.6% discounted loan for a period of 20 months. 

I = P * r * t

I = 1000 * 0.056 *(20/12) =============== 5.6 /100 = 0.056

I = $93.33 

Net amount = 1000-93.33 =906.7

I=P*r*t

93.33 =906.7 *r*(20/12)

93.3 *12/(20 *906.7) = r
r=0.0617

= 6.17 %