Question

If a business borrows $20,000 and repays $30,800 in 4 years, what is the simple interest rate?

Answer 1

I = PRT
10,800 = 20,000 * R * 4
10,800 = 80,000 * R
0.135 = R
13.5% = R

Answer 2

if a bussiness borrows $20,000 and repays $29,500 in 5 years , what is the simple interest rate?