Question
Asked Sep 30, 2019
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Find the interest rates earned on each of the following. Round your answers to the nearest whole number.

  1. You borrow $720 and promise to pay back $792 at the end of 1 year.

      %

  2. You lend $720 and the borrower promises to pay you $792 at the end of 1 year.

      %

  3. You borrow $65,000 and promise to pay back $160,938 at the end of 8 years.

      %

  4. You borrow $8,000 and promise to make payments of $2,219.30 at the end of each year for 5 years.

      %

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Expert Answer

Step 1

Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and specify the other subparts (up to 3) you’d like answered.

Step 2

The formula to calculate interest rate is given below:

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Step 3

1.

Present value of borrowed amount is $720.

Future value of amount to be paid is $...

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