Question

You have borrowed Rs 850 from your sister
and you have promised to pay her Rs 1,000
after 3 years. With annual compounding,
find the implied rate of interest for this loan.
a. 5.57%
b. 9.97%
C. 6.67%
d.7.83%​

Answer 1

Answer:

b.9.97

Step-by-step explanation:

Answer 2

Answer:

5.57%

Step-by-step explanation:

1000=850(1+r)^3

1000/850= (1+r)^3

1.1765=(1+r)^3

1.1755^1/3= (1+r)

1.0556=(1+r)

1.0556-1=r

0.0556=r

0.0556×100=r

5.57%=r