You have borrowed $1,554 from your parents. You will pay them back what your borrowed plus...

You have borrowed $1,554 from your parents. You will pay them back what your borrowed plus $263 in 3 years. What is the implied interest rate? Answer as a percent

Expert Solution

Simple interest = Principal * Rate * Time

$263 = $1,554 * Rate * 3

Rate = $263 / ($1,554 * 3)

Rate = 0.0564 or 5.64%

jeff jeffy answered 2 years ago

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