Question

Rita borrows $5000 from her parents. she repays them $6000.what is the interest rate if she pays at the end of year 2

Answer 1

Rita borrowed 5 000 dollars from her parents.
Now, she paid 6 000 dollars after 2 years.
how much interest did she paid?
Let x be the value of interest that she paid
=> 5000 = x * 6000
=> 5000 = 6000x
=> Now, divide each sides with 6000
=> 5000 / 6000 = 6000x / 6000
=> 0.8 = x
=> 0.8 / 100
= 80 %
100% - 80%
=> 20 %, thus, Rita paid 20% to his parent.