Math word problem

Question

Suppose that you borrow ​$2000.00 from a friend and promise to pay back ​$2820.00 in 22 years. What simple interest rate will you​ pay?

Answer 1

the underlying formula that you want to use to solve for the simple interest rate is

r = I / P*t

meaning that the simple interest rate in this scenario is

r = 820 / (2000*22) = 820 / 44000 = 0.018636 x 100% = 1.86%

so the simple interest rate you will pay is approximately 1.86%

Answer 2

Simple interest formula is: Interest = Principal x Rate x Time (in years)... or I = PRT

Interest = 2820 - 2000

Principal = 2000

Rate: R

Time: 22

So we have 820 = 2000(R)(22)

Solve for R