Question

David needed money for some unexpected expenses, so he borrowed $3,695.17 from a friend and agreed to repay the loan in five equal installments of $950 at the end of each year. The agreement is offering an implied interest rate of .A) 14.85%
B) 9.57%

C) 11.00%

D) 12.98%

Answer 1

Answer:

5.71% annually and 28.55% for the five years

Explanation:

The total repayment is 950*5 =4750

This shows the total interest as 4750-3695.17=1054.83

the implies 28.55 % of the principal amount

Answer 2

Answer:

11% is the implied interest.

Explanation: