Question

You borrow 10,000 and promise to pay 2,571 each year for 5 years.
Find rate of return.

Answer 1

Answer:

P = 10,000

Each year installment = 2571

So the final amount

A = 5*2571 = 12855

So interest paid = 12855 - 10000 = 2855

SI = P*R*T/100

2855 = 10000*R*5/100

R = 5.71 %

Answer 2

Answer:

0.2855 %

Step-by-step explanation:

Initial money = 10000 rs.

total money to be paid (including interest)=

2571 × 5 = 12855 rs.

Rate of return =( final value - initial value)/ initial value

= (12855-10000) / 10000

= 2855/ 10000

=0.2855 %

hope it helps!!